The first ETF based on NFTs will disappear shortly after its creation. The company defiance launched the first exchange-traded fund (AND F) based on NFT in 2021. Despite a historic year 2021 for non-fungible tokens, defiance would be preparing to close its famous AND F, for lack of having found an interested public. What really happened?
Defiance fails badly with its NFT-based ETF
The first-ever NFT-focused exchange-traded fund and the assets of metaverse announced its closure. The ETF Defiance Digital Revolution, listed on the New York Stock Exchange under the memo code NFTZ, will close by the end of February, according to a recent press release. The fund will begin liquidating its portfolio assets from February 16 and will no longer accept orders for new creation units after that date. “Prior to the liquidation date, the shareholders may only sell their shares to certain broker-dealers, and there can be no assurance that there will be a market for the shares of the Fund during this period “, indicates the document.
“The fund failed to attract capital,”
Sylvia Jablonski, CEO and CIO at Defiance ETFs
NFTZ is a AND F which allowed investors to have a stake in a number of companies related in one way or another to the space NFT. It seems that the failure of NFTZ is linked to a question of timing. defiance wanted to ride the wave of popularity of NFTs in 2021, however, the latter quickly disappeared during the year 2022, pushed by the continuous fall in the price of crypto currencies. As Bitcoin and the entire market sank into the abyss, the jpegs on the blockchain have ceased to be the priority of investors…
ETFs die hard in crypto
others AND F related to cryptocurrencies are also shutting down as the entire industry falters following a number of scandals and bankruptcies. The clownish implosion of FTX left investors stunned and brought down some of the most important players in the space. Around the world, digital asset-focused exchange-traded product launches are proving more complicated than expected.
The crypto exchange KuCoin launched its own AND F NFTs last July allowing users to hold proportionally shared ownership of “first-in-class native” NFTs. order“Blue Chips” as the Bored Ape Yacht Club. Since its launch, trading has been steady, which could be due to the fact that it is traded directly on a exchange crypto.
Bitcoin ETFs (Spot), which directly track BTC, do not yet exist in the United States. Recently, companies Crypto Ark Investment Management and 21Shareswho applied to open their own Bitcoin ETF, have faced several refusals from the DRY. Even the titan DCG battles with the regulator to be heard… In a new court document, the digital asset management company Grayscalea subsidiary of DCG, has criticized the US securities regulator for its “illogical” and “fundamentally unreasonable” argument against approving a spot bitcoin exchange-traded fund (ETF).
The article NFT: The first ETF focused on NFTs announces its closure appeared first on Corner Academy