The Defiance Digital Revolution ETF (ticker NFTZ) will track the index of blockchain-related companies and non-fungible tokens.
With the approval of a traditional cryptocurrency ETF nowhere to be seen, at least one U.S. money manager wants to touch on another hot trend in the blockchain.
Defiance ETFs will launch the Defiance Digital Revolution ETF (ticker NFTZ) on Thursday, which will track the index of non-fungible blockchain-related companies and tokens. It will not invest directly in any cryptocurrency (the meter tracks companies with exposure to the industry), but it is the first ETF to touch on NFT’s thriving market.
The U.S. Securities and Exchange Commission approved an ETF for Bitcoin futures to begin trading in October, with close regulators approving a fund to invest in cryptocurrencies. Blockchain-themed ETFs have proliferated in recent years while the SEC has rejected many requests for a witness ETF.
The NFTZ fund is “a great way for investors to access the fast-growing aspect of blockchain technology in the digital world, as well as companies involved in the NFT renaissance,” said Sylvia Jablonski, investment manager at Defiance ETF. “Companies in this index are key players in building Web 3.0,” or a decentralized, blockchain-based Internet version.
The fund has a management fee of 0.65%, which is $ 6.50 for every $ 1,000 invested. Its top positions are Silvergate Capital Corp., Cloudflare, Inc., Bitfarms Ltd., Marathon Digital Holdings Inc., Hut 8 Mining Corp. and Coinbase Global Inc., among others.
NFT, which allows owners of art, collectors and almost any other asset to track ownership, has caught fire this year as a result of the wider rise in the crypto markets. Investors have set aside huge sums of money for photographs of rocks, depictions of cartoons of penguins and monkeys, and other combinations and works of art.
Nonfungible.com lists approximately 766,000 sales in the last month, with a total of $ 1.8 billion spent. Not all NFTs are successful – there is a lot of data to show that there are a lot of bugs – but the average has sold around $ 2,326 in that stretch, the website shows.
“Today NFTs are what Bitcoin was 10 years ago, except for a strong community of creators and investors who are working together to determine the future path of a non-fungal token,” Jablonski said. “They are part of a special club, a partnership, and so the investment takes on this new meaning of social interaction.”
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–With the help of Olga Kharif, Claire Ballentine and Katie Greifeld.