Thursday, Registered investment advisor and fintech firm Defiance announced the launch of the first exchange traded fund (ETF) focused on non-fungible tokens (NFTs) on the NYSE Arca. The fund trades with the ticker NFTZ and has an annual management fee of 0.65%.
The Fund does not buy or own NFT directly for storage in portfolios. Instead, it tracks an index of companies in the NFT space, or looking to venture into it, as well as the Metaverse. The BITA NFT and Blockchain Select Index, which the fund aims to replicate, is managed by the German fintech company BITA.
Some of the fund’s notable holdings include Coinbase, Cloudflare, Plby Group [Playboy], Marathon Digital and Hut 8 Mining. His biggest stake is Silvergate Capital with 6.74% of his net worth. Unknown to most investors, Silvergate is one of the world’s largest gateways for crypto-to-fiat transactions between centralized cryptocurrency exchanges and financial institutions. In the third quarter alone, Silvergate helped move more than $ 162 billion in these types of transactions. The NFTZ ETF has a total of 34 companies in its portfolio.
In connection with the advertisement, Sylvia Jablonski, Defiance Co-Founder and Chief Investment Officer said:
“The NFT revolution will fundamentally change the economic model for artists, athletes, content creators and many other industries that we cannot even imagine today. NFTs could be bigger than the internet. “
In addition to NFTZ, the fintech company is also planning to launch a basket of ETFs that reflect the latest advances in information and biotechnology. Among the best known are its next generation 5G, psychedelic, hydrogen and quantum computing ETFs.