SNEAK PEEK
- Defiance Digital Revolution ETF (ticker NFTZ), the first NFT-based ETF liquidates.
- NFTZ, during its operational tenure, had failed to attract assets.
- NFTZ ended January 2023 with $5.3 million in assets as compared to $14 million at its peak in March 2022.
In order to add to the expanding list of victims of the cryptocurrency crisis, the first exchange-traded fund (ETF) centered on non-fungible tokens (NFTs) is getting ready to liquidate.
The Defiance Digital Revolution ETF (ticker NFTZ), which had its debut at the end of 2021, will close at the end of February, according to a press release. The fund would start liquidating its holdings around February 16.
This ETF followed blockchain-related companies as well as an NFT index. Sylvia Jablonski, CEO and CIO at Defiance ETFs, stated that this ETF had failed to attract assets, citing it as one of the reasons for its liquidation.
The popularity of cryptocurrencies in 2021 led to a spike in people’s interest in NFTs, which would let collectors and owners of art track ownership. The price of digital tokens has fallen as a result of the Federal Reserve’s more hawkish stance, which has created a severely constrained environment for speculative assets.
Other crypto-related ETFs are being liquidated as businesses crumble in the wake of many scandals and bankruptcies. Investors were shocked by the fall of the FTX empire, which resulted in the loss of employment for some of the most important market participants.
Globally, exchange-traded vehicles that focus on digital assets have been debuting less frequently.
According to data published by Bloomberg, NFTZ, which didn’t directly invest in cryptocurrencies, ended January with about $5.3 million in assets, down from almost $14 million at its peak in March 2022.
