By the end of February, the Defiance Digital Revolution ETF will stop trading.
The NFTZ exchange-traded fund, which was hailed as the first of its kind for NFTs, is closing. By February 28, NFTZ, the Defiance Digital Revolution ETF, will “close and liquidate,” according to a statement from Defiance ETFs.
Sylvia Jablonski, co-founder, and chief investment officer of Defiance ETFs, predicted that NFTs “may be bigger than the internet” when trading began in December 2021. NFT (non-fungible token) and cryptocurrency-related businesses were followed by NFTZ, including the toy and collectibles manufacturer Funko, the online auction site Ebay, and the digital asset exchange Coinbase. The New York Stock Exchange listed the Fund’s shares.
From US$24.41 to US$21.66 in its first two trading days, the fund decreased by 11%.
Indirect exposure to an underlying asset, such as gold, foreign currencies, or Bitcoin, is provided by ETFs, which are well-liked investment instruments. This eliminates the need to hold such assets and enables investors to diversify their portfolios.
An ETF called NFTZ gave investors the chance to own shares in a variety of businesses that were somehow associated with the NFT industry. A native blue-chip NFT ETF was introduced by cryptocurrency exchange KuCoin in July, enabling customers to own a percentage of native NFTs like the Bored Ape Yacht Club.
NFTs are tokens with a unique cryptographic identity connected to digital (or physical) content. In 2021, they skyrocketed, and many famous people formed their own NFTs or made public investments in them. Major corporations also got involved by making investments in NFT marketplaces, including Ebay and Funko.
However, interest in the cryptocurrency space, including NFTs, has decreased as a result of the steep declines in the prices of Bitcoin and every other coin and token in the ecosystem.
At least during the bull run, there is a market for bitcoin and cryptocurrency futures ETFs in the United States: When the first one was introduced in October 2021, it immediately took off and sold close to $1 billion.
There are currently no Bitcoin spot ETFs available in the United States that directly track the largest digital currency. To start one, numerous significant crypto firms have submitted applications to the SEC, but all have been denied.