Home News First NFT Exchange-Traded Fund Closes as Metaverse Assets and NFT Cool Down

James Carter

02 Feb 2023

First NFT Exchange-Traded Fund Closes as Metaverse Assets and NFT Cool Down

As the crypto winter continues to hurt more people, the first exchange-traded fund to focus on non-fungible tokens and metaverse assets has announced that it will be closing.

First NFT Exchange-Traded Fund Closes

A recent press release says that the Defiance Digital Revolution (ETF), which trades on (NYSE) under the ticker symbol NFTZ, will be sold off by the end of February. After February 16, the fund will no longer take orders for new creation units, and it will start selling off its assets. On February 16, this process will start.

According to the announcement, “Prior to the Liquidation Date, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for the Fund’s shares during that time period.” This information was given in the context of the possibility that shareholders would only be able to sell their shares to certain broker-dealers.

The fund will be made available by Defiance ETFs and will be launched in December 2021. It will be constructed to track the BITA NFT and Blockchain Select Index, which is an index that monitors blockchain-related companies as well as non-fungible tokens. Since it was first introduced, the fund’s shares have experienced a loss of more than 72 percent.

The closure of the fund comes as excitement regarding non-fungible tokens (NFTs) and metaverse assets have significantly subsided over the course of the past year in the midst of a broader market downturn that has seen significant cryptocurrencies such as Bitcoin and Ethereum lose approximately 70 percent of their value compared to all-time highs.

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The experts on non-fungible tokens at Casinos En Ligne predict that sales of non-fungible tokens will drop by 83 percent compared to the previous year in 2022. In addition, the amount of non-financial transactions conducted through NFTs dropped by at least 83 percent across all markets, including art, gaming, and collectibles.

In January 2022, sales of non-fungible tokens reached a record high of $2.8 billion per month, marking an all-time peak for the NFT market. However, following a spate of bankruptcies and implosions that saw over $2 trillion wiped out of the crypto market, that amount suffered a dramatic decrease by the beginning of this year, bringing the total to a new all-time low.

Despite the fact that the market for NFTs has been a slaughterhouse, a number of prominent corporations have indicated their intentions to expand their operations into NFTs. A “digital assets enterprise” centred on non-fungible tokens and Web3 games is going to be launched by Amazon this spring, as was reported not too long ago by the company.

A system that could be used to track the development, usage, and transfer of digital assets that were created within a game was the subject of a patent application that was submitted by Sony in the month of November. A method for “generating, updating, tracking, authenticating, and/or transmitting unique digital assets” related to video games is envisioned in the patent as one of its potential applications.

Additionally, in December of the previous year, the investment behemoth Fidelity applied for three new trademarks, all of which gave the impression that the company intended to make a more significant investment in cryptocurrencies and Web3. The filings center on non-fungible tokens (NFTs) as well as virtual worlds like the Metaverse.