The rise of non-fungible tokens continues as a popular theme in 2021 with NFTs rising in value and stocks increasing their exposure to NFTs through token launches, marketplaces and partnerships with leading NFT projects.
The first NFT ETF is launching with The Digital Revolution NFTZ from Defiance ETFs. Here are the details.
What Happened: Defiance is launching the first NFT ETF as a bet on the growth of the new asset type.
“NFTs could be bigger than the internet,” said Defiance ETFs co-founder and Chief Investment Officer Sylvia Jablonski. “In October, all-time NFT trading volume surpassed $15 billion.”
The new ETF offers exposure to NFTs, blockchain and cryptocurrency ecosystems and NFT marketplaces.
NFTs could change the economic model for creators, athletes and artists, according to Defiance ETF’s press release.
The ETF will track the BITA NFT and Blockchain Select Index. The index will follow rules and rebalance on a quarterly basis. Stocks included in the ETF must have exposure to NFTs, cryptocurrency mining, cryptocurrency banking or announced publicly plans to enter the NFT space.
NFTZ has an expense ratio of 0.65% and holds 40 stocks at the time of writing.
Related Link: What Is A Non-Fungible Token?
NFTZ Holdings: The initial makeup of the ETF consists of asset allocation of 32.5% for non-fungible token stocks, 25.9% cryptocurrency mining stocks, 21.9% crypto asset management and trading stocks, 15.2% crypto banking, payments and services stocks and 4.6% blockchain technology stocks.
Here are the initial holdings on the ETF:
- Silvergate Cap Corp SI: 6.7%
- Plby Group PLBY: 5.3%
- Cloudfare Inc NET: 5.2%
- Northern Data AG: 5.1%
- Bitfarms Ltd BITF: 4.9%
- Marathon Digital Holdings MARA: 4.8%
- Hut 8 Mining HUT: 4.5%
- Sbi Holdings Inc: 4.3%
- Coinbase Global COIN: 4.3%
- Riot Blockchain RIOT: 4.3%
- Hive Blockchain Technologies HIVE: 4.1%
- Cleanspark Inc CLSK: 4.1%
- Argo Blockchain Inc ARBK: 3.9%
- Canaan Inc CAN: 3.7%
- Voyager Digital VYGVF: 3.6%
- Ebay Inc EBAY: 3.6%
- Defi Technologies Inc: 3.5%
- Square Inc SQ: 3.0%
- Funko Inc FNKO: 2.6%
- Robinhood Markets HOOD: 2.3%
- Mogo Inc MOGO: 2.2%
- DraftKings Inc DKNG: 2.1%
- Bigg Digital Assets: 1.8%
- Bitcoin Group SE: 1.6%
- SOS Limited SOS: 1.5%
- Vinco Ventures BBIG: 1.1%
- Dmg Blockchain Solutions: 1.1%
- Eqonex Limited EQOS: 0.9%
- Atari: 0.8%
- Digihost Technology: 0.8%
- Arcane Crypto: 0.8%
- Banxa Holdings Inc: 0.8%
- Wisekey International Holding WKEY: 0.4%
- Dolphin Entertainment DLPN: 0.4%
About Defiance ETFs: Launched in 2018, Defiance offers several pure play thematic ETFs.
The company launched the first 5G ETF with the Defiance Next Gen Connectivity ETF FIVG. Defiance also offers the Defiance Next Gen Big Data ETF BIGY and the Defiance Quantum ETF QTUM.
Other thematic funds include ones based on SPACs with Defiance Next Gen SPAC Derived ETF SPAK, psychedelics with the Defiance Next Gen Altered Experience ETF PSY and post COVID-19 reopening stocks with the Defiance Hotel, Airline and Cruise ETF CRUZ.
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