The fund promises exposure to the digital asset and NFT industry through investment in the shares of major companies in the crypto space.
While the US market continues to wait for the approval of a first ETF (exchange-traded fund) of Bitcoin “Physical”, other investment products related to the crypto space are entering the market.
The cryptocurrency company Defiance announced that it is launching, which it says is the first ETF linked to the industry of tokens non-expendable (NFT). Yes OK does not invest directly in digital collectibles, the fund, called ‘Defiance Digital Revolution ETF‘(stock symbol: NFTZ), tracks an index made up of blockchain companies and NFTs.
“$ NFTZ offers investors thematic exposure to the ecosystems of NFT (Non-Fungible Tokens), Blockchain and cryptocurrencies, which include NFT markets and issuers such as Coinbase and Playboy ”the firm said in a statement. For her part, the investment director of Defiance ETFs, Sylvia Jablonski, commented on the matter Bloomberg.
[El fondo] is a great way for investors to gain access to not only the fast-growing Blockchain technology aspect of the digital world, but the companies that are participating in the NFT resurgence.
ETFs with exposure to the crypto and NFT industry
One of the main attractions of the new investment vehicle of Defiance is its link to the burgeoning NFT market, which has generated nearly $ 1.8 billion in revenue over the past month, according to data from NonFungible.
As such, the fund is based on the BITA NFT and Blockchain Select index, made up of companies listed on the North American and European stock exchanges that are related to distributed technology.
In accordance with Bloomberg, the The ETF’s main positions are in prominent companies in the crypto industry What , Silvergate Capital Y Bitfarms, one of the best known mining companies in the ecosystem. Also included are Cloudflare, Marathon Digital Holdings, Hut 8 Mining Corp, among other.
The Index is made up of publicly traded companies in North America and Europe and aims to capture the upside potential generated by gains related to the adoption of cryptocurrency and blockchain-related technologies, including NFTs.
From the group of companies, Coinbase stands out for being one of the biggest players in space. The San Francisco-based company entered the NFT market this year after announcing a collectibles trading platform. While this market has still been launched, it has already generated great expectations among users. More than 1 million users have registered on the platform.
As read in the official statement of Defiance, the fund expects to hold more than 25% of its total assets in the securities of cryptocurrency companies and Blockchain. “The companies in this index are key players in the construction of Web 3.0Jablonski added.
“NFT could be bigger than the Internet“
NFTs are scarce assets based on Blockchain that can represent and allow to demonstrate the property of almost any object of the digital (and physical) world. The rise of this market has been fueled by the entry of NFTs into various industries, from the traditional art world to music, film and even the sports industry. That and so much more.
In conversation with Bloomberg, the representative of Defiance shared his view that NFTs are “part of a special club, a membership, and so investment takes on this new meaning of social interaction“. She was also especially optimistic and believes that NFTs could impact the world as Bitcoin it has done; even anticipates that “NFTs could be bigger than the Internet“.
NFTs are today what Bitcoin was 10 years ago, with the difference that there is a strong community made up of creators and investors who coexist to determine the future path of a non-fungible token.
The news about the first ETF linked to NFT comes a few months after the United States Securities and Exchange Commission (SEC) approved the first ETF based on futures of Bitcoin from ProShares. The US market has seen the arrival of several funds of its kind backed by the crypto derivatives market.
Regulators’ attitude was seen as a watershed moment for the cryptocurrency industry, yet the SEC has yet to approve an ETF backed by Bitcoin cash. In general, investors are still waiting for the arrival of such an investment product, although the president of the SEC has hinted that the agency is not yet ready to approve an ETF with those characteristics.
Article by Hannah Estefanía Pérez / Daily bitcoin
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