NFT ETF Pioneer NFTZ Announces Shut Down of Services

• Defiance ETFs has said that as of February 28, they would “close and sell” its NFTZ.
• In its first two trading days, the fund dropped from US$24.41 to US$21.66, an 11% decline.

Despite its widespread recognition as the pioneering NFT ETF, NFTZ has decided to close its doors. Defiance ETFs has said that as of February 28, they would “close and sell” its Defiance Digital Revolution ETF (NFTZ). Sylvia Jablonski, the co-founder of Defiance ETFs and Chief Investment Officer, predicted that NFTs “could be bigger than the internet” when trading began in December 2021.

Funko, an online marketplace, and Coinbase, a crypto exchange, were just a few of the firms that NFTZ monitored because of their involvement in the NFT (non-fungible token) and cryptocurrency field. The Fund’s shares were publicly traded on the New York Stock Exchange.

Struggling NFT Market

In its first two trading days, the fund dropped from US$24.41 to US$21.66, an 11% decline. Exchange-traded funds (ETFs) are common investment instruments that provide indirect exposure to an underlying asset (such as gold, a foreign currency, or Bitcoin) via shares. This eliminates the need for investors to have such assets on hand while allowing them to diversify their holdings.

As an exchange-traded fund (ETF), NFTZ gave investors exposure to a basket of firms involved in or linked to NFTs. Last July, KuCoin, a cryptocurrency exchange, established its own NFT ETF, allowing investors to buy fractional shares of local blue-chip NFTs like the Bored Ape Yacht Club.

In 2021, NFTs saw a meteoric rise, with many celebrities publicly buying into or making their own NFTs. Some of the biggest names in business, like eBay and Funko, have also put money into NFT marketplaces. Interest in the crypto world, including NFTs, has decreased as the price of Bitcoin and all other coins and tokens in the ecosystem have plummeted.