Fintech company and Investment adviser, Defiance has officially announced its launching of the first nonfungible token (NFT)-focused exchange-traded fund (ETF) on the New York Stock Exchange Arca. The Thursday announcement also confirms the ETF to be listed under the ticker NFTZ, with a yearly management fee of 0.65%.
Interestingly however, unlike the Bitcoin ETFs which can be traded, the fund will not exactly be buying or holding NFTs just for the sake of custody. According to Defiance, the fund is seeking to be able to track the performance of companies that are either already operating in the NFT industry or looking to join in. It will be tracking companies venturing into the Metaverse as well.
Meanwhile, the fund comes with some big-name holdings including the likes Silvergate Capital — taking up nearly 6.74% of its total assets, Cloudflare, Marathon Digital, Coinbase, Hut 8 Mining, and the Plby Group [Playboy], Marathon Digital, Hut 8 Mining and many others. In total, the NFTZ ETF holds no less than 34 companies in its portfolio.
At this present moment, and among centralized crypto exchanges and financial institutions, Silvergate is fast becoming one of the world’s leading gateways for crypto to fiat transactions. In fact, in Q3 alone, Silvergate helped oversee similar transactions which were worth more than $162 billion. The NFTZ ETF holds a total of 34 companies in its portfolio.
More Upcoming ETF Plans By Defiance
Speaking about the announcement, the chief investment officer and co-founder of Defiance Sylvia Jablonski says the NFT revolution has opened up a new pathway for all creators, artists, and even athletes in an unimaginable way. According to her, NFTs could go on to even become bigger than the internet itself.
Reports filtering in also suggests that in addition to the NFTZ, more ETFs are upcoming, even as Defiance hopes to also track the latest developments in biotechnology and information technology.