People say that NFTZ was the first exchange-traded fund (ETF) for NFTs in the world; however, it is closing.
Defiance ETFs has announced that their Defiance Digital Revolution ETF, NFTZ, will be “closed and liquidated” by February 28.
When trading began in December 2021, Sylvia Jablonski, co-founder and chief investment officer of Defiance ETFs, stated that NFTs “could be bigger than the internet.”
What is NFTZ?
NFTZ monitored companies in the NFT (non-fungible token) and cryptocurrency space, such as Funko, a manufacturer of collectible toys, eBay, and Coinbase, a digital asset exchange. The shares of the Fund were made available for sale on the New York Stock Exchange.
In its first two trading days, the fund lost 11%, falling from US$24.41 to US$21.66.
ETFs are popular investment vehicles because they provide indirect access to underlying assets such as gold, foreign currencies, and Bitcoin via shares. This means that investors can add more assets without having to store them.
NFTZ is an exchange-traded fund (ETF) that allows investors to purchase shares in a variety of NFT companies. In July of 2018, the cryptocurrency exchange KuCoin introduced its own NFT ETF, allowing users to own shares of native blue-chip NFTs such as the Bored Ape Yacht Club.
NFTs are tokens that are cryptographically linked to digital (or physical) content. In 2021, they became extremely popular, and many celebrities invested in them or created their own. Additionally, large corporations like eBay and Funko have invested in NFT marketplaces.
But since the price of Bitcoin and all other coins and tokens in the ecosystem has decreased, interest in the crypto world, including NFTs, has decreased.
During the bull run, Bitcoin and crypto futures ETFs have found a market in the United States. When the first one was released in October 2021, sales nearly reached $1 billion on the first day.
There are currently no Bitcoin spot ETFs that track the largest digital currency directly in the United States. Numerous large crypto companies have asked the SEC for permission to launch one, but they have all been denied.