According to Defiance ETFs, the Defiance Digital Revolution ETF(NFTZ) is closing its doors. It was recognized as the first NFT ETF. Market insiders were surprised by the sudden move after more than 50% jump from December 2022’s lows.
NFTZ gives you exposure to a range of companies involved in the NFT or cryptocurrency industries. The shares of the fund were publicly traded on the New York Stock Exchange Arca. They also have companies like DraftKings and Coinbase as well as a selection Bitcoin miners in their portfolio.
However, despite initial excitement and predictions made by Sylvia Jablonski (the co-founder and Chief Investor Officer of Defiance ETFs), that NFTs could be “bigger than the Internet”, the NFT marketplace has struggled with its growth.
NFT ETFs in Crypto-Sphere
NFTZ was launched in December 2021 at the peak of the market. They had to bear the crypto winter for the first year. The fund saw a 11% decline in its first two trading days.
As the value of Bitcoin, and other cryptocurrency, plummeted, interest in NFTs has fallen. However, the entire space has seen a significant reversal since 2023, many analysts claiming it is the bottom.
Kucoin, a leading Asian crypto exchange, launched its NFT ETF last summer. It tracks a variety of blue-chip NFTs. These include CryptoPunks and SandBox, OtherDeed, Bored Ape Yacht Club, CryptoPunks and Ethereum Name Service.
KuCoin NFT ETFs can be traded on the exchange. This gives its users the opportunity to fractionally own native blue-chip NFTs. It has been trading steadily since its launch. This could be due to the fact that it is traded on a cryptocurrency exchange.
What are ETFs?
ETFs like NFTZ provide indirect exposure to underlying assets via shares. Investors can diversify their holdings by using ETFs, which allow them to hold shares in the markets they represent.
ETFs exist in all markets. For example, Gold ETF shares represent a small portion of a bar or equity in gold mining firms. The SEC has been asked to launch a spot Bitcoin ETF. This would allow for more liquidity to enter the market. However, the powers that have denied all Bitcoin ETFs.
NFTZ May Be Closing, But the NFT Market is Only Just Starting
NFTZ was ablaze with glory when it opened. December 2021 was the peak of crypto. Bitcoin miners went public, a new Bitcoin Futures ETF was just launched, and there was lots of optimism in market.
The first NFT ETF platform has not been successful, even though the market is recovering. Is it too soon for the NFT industry’s ETF to be listed on a legacy stock market? It’s difficult to argue against this, but we expect many more NFT ETFs to launch in the future.
NFT News Today’s first article, Defiance ETFs to Close NFTZ EFTF after Just 13 Months appeared originally on NFT News Today.
Did you miss our previous article…
https://nft.magnewsblog.com/next-up-five-ones-to-watch-in-february-2023/
