Defiance, a crypto asset company, is launching an NFT ETF.
The blockchain and NFT-related industries will be tracked by the Defiance Digital Revolution ETF—NFTZ.
According to Sylvia Jablonski, CIO for Defiance ETFs, the fund is “a great way for investors to gain access to not only the fast-growing blockchain technology aspect of the digital world, but companies involved in the renaissance of NFTs.”
“The companies in this index are critical players in the development of Web 3,” Jablonski added.
What exactly is in the NFT fund?
The main selling point of the NFTZ fund is that it tracks companies involved in the blockchain and NFT markets.
At the time of writing, the top positions in the fund are filled by a who’s who of prominent crypto companies, including Coinbase, Silvergate Capital, and Bitfarms—one of the most well-known mining companies in crypto.
Though Coinbase has been a major player in the industry as an exchange, the San Francisco-based company has also entered the NFT sector as of October of this year. Coinbase NFT, the company’s new platform, saw 1.4 million sign-ups in less than 48 hours after its announcement.
Jablonski is particularly optimistic about NFTs, comparing the burgeoning digital market to Bitcoin when it first arrived in 2009—but with a twist.
She went on to say that NFTs represent membership in a “special club,” implying that NFT investments include a “new meaning of social interaction.”
The fund also has a 0.65 percent management fee, which means investors pay $6.50 for every $1,000 invested.
The SEC is warming to cryptocurrency.
The NFTZ fund debuted shortly after the Securities and Exchange Commission (SEC) approved the first American Bitcoin futures ETF, the ProShares Bitcoin Futures ETF, in October.
The SEC’s decision, seen as a watershed moment for the crypto industry, gave regular investors access to the cryptocurrency industry’s flagship asset on major stock exchanges, promising to bring in waves of new money.
Other Bitcoin futures ETFs have launched in the United States since the ProShares fund launched in October.
As a result, Grayscale CEO Michael Sonnenshein has lamented that the launch of a Bitcoin spot ETF has become a “political issue.”