An exchange-traded fund (ETF) focused on non-fungible tokens (NFTs) started trading Thursday on the New York Stock Exchange, sponsor Defiance ETFs announced. The fund fell 11% to US$21.66 from US$24.41 in its first two days of trading.
Fast facts
- The First NFT Focused ETF (NFTZ) offers investors exposure to the NFT, blockchain and cryptocurrency ecosystems, following a booming NFT market this year. The fund follows the BITA NFT and Blockchain Select Index.
- “NFTs could be bigger than the internet,” Sylvia Jablonski, co-founder and chief investment officer of Defiance ETFs, said in a statement. “In October, all-time NFT trading volume surpassed $15 billion.”
- NFTZ has an expense ratio of 0.65%, which means a $6.50 management fee for every $1,000 invested. Its top holdings include Silvergate Capital Corp.; Cloudflare, Inc.; Coinbase Global Inc., and more, according to the company’s website.
- The ETF launched two days after Congressional testimony by Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen conveyed concerns about the Omicron Covid-19 variant and high and persistent inflation. NFTZ closed at $23.75 a share on its debut, down 2.7%.