Defiance ETFs announced today in a press release the launch of the very first ETF that offers investors exposure to the NFT (non-fungible token) ecosystem. The Defiance Digital Revolution ETF (NFTZ) allows investors access to the NFT marketplace and the blockchain technology that underpins it, investing in a variety of securities that all contribute to the NFT space.
NFTs allow for a form of digital ownership of both real-world and virtual items and could have many possibilities in their applications. The fund invests in companies that are involved with NFTs, as well as the blockchain systems supporting them, which also could potentially have a myriad of applications going forward. NFTZ also invests in the cryptocurrency economy that is driving transactions.
“NFTs could be bigger than the internet,” says Sylvia Jablonski, co-founder and chief investment officer of Defiance ETFs. “In October, all time NFT trading volume surpassed $15 billion.”
The fund seeks to track the BITA NFT and Blockchain Select Index, a rules-based index that is made up of companies that make most of their revenue from the blockchain and cryptocurrency ecosystem or else have exposure to the NFT ecosystem. This includes crypto asset management and trading companies; crypto banking, payments, and services companies; crypto mining companies; crypto mining hardware companies; and blockchain technology companies.
Companies that are included must have publicly disclosed in regulatory filings, earnings reports, presentations, or conference calls that that they either operate services related to NFT creation or circulation, or else that they invest in funds or projects that are related to NFT creation and circulation. The index includes companies from both developed and emerging markets and can be from any market cap.
NFTZ carries an expense ratio of 0.65% and does not invest directly in cryptocurrencies or NFTs.
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