Defiance ETFs release the Defiance Digital Revolution ETF this week; which chains blockchain-related firms. It will not invest directly in any cryptocurrencies; But also keeps an eye on the firms that have exposure in the industry. This is one of the first ETFs to benefit from the growing market for NFTs.
The U.S. Securities and Exchange Commission allowed the ETF to start trading in October, owning Bitcoin futures. The closest regulators have approved a fund that invests in cryptocurrencies. Blockchain thematic ETFs multiplied after the SEC rejected many applications for Spot ETFs in the last few years.
According to Sylvia Jablonski, Investment Officer at Defiance ETF, the NFTZ Fund is an excellent way for investors to access both the fastest growing blockchain technology in the digital world and companies involved in NFT revitalization. Companies with this index are critical players in the development of Web 3.0. This is an idealized version of the Internet that is blockchain-based and decentralized.
The fund manages a management fee of 0.65%. That means $6.50 for every $1000 invested. Hut 8 Mining Corp., Marathon Digital Holdings Inc., Cloudflare Inc., Silvergate Capital Corp., Bitfarms Ltd., and Coinbase Global Inc.
NFTs allow owners of collectibles, art, and any other asset to keep track of property. There is a broader boom in crypto markets this year. Investors spent staggering sums of money on monkeys, penguins, rock paintings, cartoons, and other works. About 766,000 sales were listed on nonfungible.com last month. A total of $1.8 billion has been spent. Not all NFT hits are, though on average, one sells for around $2,326 at this point.
According to Jablonski, today’s NFT is what Bitcoin was ten years ago. In addition, there is a strong community of investors and creators. They coexist to determine the future path of the irreplaceable token. Moreover, they are part of a particular club. Investments are therefore taking on a new meaning in social interaction.
NFT trade volume exceeded $15 billion in October. There are several reasons for this, including the entry of such famous people as Snoop Dogg. A recent contributing factor to Wall Street is cryptocurrencies. Arca launched a $30 million NFT-focused fund earlier this month. He invests in real NFTs.
Furthermore, Coinbase CEO Brian Armstrong recently commented that the irreplaceable token market could compete with or even outperform the company’s cryptocurrency business. Coinbase plans to open its NFT market in the next few quarters.