March 19, 2024

Definance ETFs closes world's first exchange-traded NFT fund

Article Reading Time:
1 min.

Definance ETFs closes the world's first NFT exchange-traded fund

The NFTZ exchange-traded fund, which was widely touted as the world's first non-fungible token ETF, has announced that it will be liquidated.

Definance ETFs reported thatwill liquidate the fund by February 28 and it will no longer accept orders for the creation of units. However, prior to the date of liquidation, shareholders have the right to sell their units to certain brokers.

NFTZ allowed its investors to have a stake inseveral companies that are in any way related to the NFT industry. However, during the crisis in the cryptocurrency market, investor interest noticeably decreased. Therefore, Definance management decided to close the fund. The liquidation procedure will begin on February 16.

According to the CEO of DefinanceETFs by Sylvia Jablonski, the fund failed to attract new assets - investors have become much more selective in both digital assets and NFTs. The fund will close with a volume of about $5.3 million, while in March last year the volume reached $14 million. 

DappRadar experts presented a report from which it follows that in 2022, the number of non-fungible tokens sold reached 101 million, which is 67% more than in the previous 2021.