A US money manager is looking for non-fungible tokens (NFTs) – one of the hottest trends in the blockchain – as approval for a conventional exchange-traded fund (ETF) in cryptocurrencies is not yet in sight.
Defiance ETFs’ Defiance Digital Revolution ETF (ticker NFTZ) launches Thursday and will track blockchain-related companies and the NFT index.
The company won’t invest in any Cryptocurrencies directly, but is one of the first ETFs to tap the booming market for NFTs.
The meter will track companies that have exposure to the crypto industry.
The next few regulators approved a fund investing in cryptocurrencies when the US Securities and Exchange Commission approved an ETF with Bitcoin futures in October.
Thematic blockchain ETFs have spread widely, while the SEC has rejected numerous applications for a spot ETF in recent years.
Sylvia Jablonski, Chief Investment Officer of Defiance ETFs, said the NFTZ fund “is a great way for investors to gain access not only to the fast-growing blockchain technology aspects of the digital world, but also to companies that are part of the renaissance of NFTs are involved ”.
The Fund bears a management fee of 0.65% or US $ 6.50 for every US $ 1,000 invested. His top positions are in Silvergate Capital Corp, Cloudflare, Inc, Bitfarms Ltd, Marathon Digital Holdings Inc, Hut 8 Mining Corp, and Coinbase Global Inc.
Although NFTs were introduced a few years ago, they really caught fire this year amid a wider boom in the crypto markets.
NFTs allow owners of art, collectibles, and almost any other asset to keep track of their possession.
According to nonfungible.com, the company’s website saw around 766,000 sales last month, with a total of about $ 1.8 billion in spending.
“NFTs are today what Bitcoin was 10 years ago, except that there is a robust community of creators and investors who coexist to determine the future path of a non-fungible token,” Jablonski said.
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