On Thursday, registered investment advisor and fintech firm Defiance announced the launch of the first NFT-specific exchange-traded fund (ETF) on the New York Stock Exchange’s Arca. The fund is listed under the ticker NFTZ and has a management fee of 0.65% per annum.
The fund does not buy or store NFTs directly in order to store them in wallets. Instead, the index tracks companies that are operating or intending to enter the NFT region as well as the Metaverse. The BITA NFT Index and Blockchain Select, which the fund intends to cancel, are backed by the German financial technology company BITA.
The fund’s significant assets include Coinbase, Cloudflare, Plby Group (Playboy), Marathon Digital, and Hut 8 Mining. The largest of these is Silverjet Capital with 6.74% of net assets. Unbeknownst to most investors, Silvergate is one of the world’s largest gateways for cryptocurrency transactions between cryptocurrency exchanges and central financial institutions. In the last quarter alone, Silvergate helped complete such transactions valued at $ 162 billion. There are 34 companies in the NFTZ ETF portfolio.
Regarding the announcement, Sylvia Jablonski, co-founder and chief investment officer of Defiance, said:
The NFT revolution will fundamentally change the economic model of artists, athletes, creatives and many other industries that we cannot even imagine today. NFTs can be larger than the Internet.
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In addition to NFTZ, the fintech company is also planning to launch a basket of ETFs that track the latest developments in information technology and biotechnology. Highlights include 5G, doping, next-generation hydrogen and ETF for quantum data processing.
