On Thursday, registered investment advisor and fintech firm Defiance Announced has launched the first exchange-traded fund (ETF) focused on non-fungible tokens (NFT) on the New York Stock Exchange Arca. The fund trades under the ticker symbol NFTZ and carries a 0.65% annual management fee.
The fund does not buy or hold NFT directly for wallet storage. Instead, tracks an index of companies that operate or intend to enter the NFT space, as well as the Metaverse. The BITA NFT and Blockchain Select index, which the fund aims to reflect, is maintained by Germany-based fintech company BITA.
Notable holdings in the fund include Coinbase, Cloudflare, Plby Group [Playboy], Marathon Digital and Hut 8 Mining. Its largest stake is Silvergate Capital, in 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 cryptocurrency exchanges and centralized financial institutions. During the third quarter alone, Silvergate helped facilitate more than $ 162 billion in such transactions. The NFTZ ETF has a total of 34 companies in its portfolio.
Regarding the announcement, Sylvia Jablonski, Defiance Co-Founder and Chief Investment Officer, said:
The NFT revolution will fundamentally change the economic model for artists, athletes, creators, and many more industries that we cannot even conceive of today. NFTs could be larger than the Internet.
Related: Invesco launches spot Bitcoin ETP on Deutsche Borse
In addition to the NFTZ, the fintech firm also plans to launch a basket of ETFs that tracks the latest information technology and biotech developments. Highlights include its 5G, psychedelic, next-generation hydrogen and quantum computing ETFs.
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