Thursday, Registered investment adviser and fintech firm Defiance announced the launch of the first exchange-traded fund (ETF) focused on non-fungible tokens (NFTs) on NYSE Arca. The fund trades with the ticker NFTZ and has an annual management commission of 0.65%.
The fund does not directly purchase or own NFT for storage in portfolios. Instead, it tracks an index of companies that operate or intend to venture into the NFT space, as well as the metaverse. The BITA NFT and Blockchain Select index, which the fund intends to track, is maintained by Germany-based fintech company BITA.
Among the most notable holdings of the fund are Coinbase, Cloudflare, Plby Group [Playboy], Marathon Digital and Hut 8 Mining. His biggest participation is Silvergate Capital, with 6.74% of its net assets. Unbeknownst to most investors, Silvergate is one of the world’s largest gateways for crypto-to-fiat transactions between centralized cryptocurrency exchanges and financial institutions. During the third quarter alone, Silvergate helped move more than $ 162 billion in these types of transactions. The NFTZ ETF has a total of 34 companies in its portfolio.
In connection with the advertisement, Sylvia Jablonski, Defiance co-founder and chief investment officer, said:
“The NFT revolution will fundamentally change the economic model for artists, athletes, content creators and many more industries that we cannot even imagine today. NFTs could be bigger than the Internet.”
In addition to NFTZ, the fintech company also plans to launch a basket of ETFs that track the latest advances in information technology and biotechnology. Among the most prominent are its 5G, psychedelic, next-generation hydrogen and quantum computing ETFs.
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