The NFT-linked ETF from Defiance ETFs is set to launch in the United States soon

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As clearance for a traditional cryptocurrency exchange-traded fund (ETF) remains elusive, one U.S. money manager is hoping to tap into non-fungible tokens (NFTs), one of the hottest developments on the blockchain.

The Defiance Digital Revolution ETF (ticker NFTZ) from Defiance ETFs is set to debut on Thursday and will follow blockchain-related companies as well as the NFT index.

The company will not invest directly in cryptocurrencies, but it is one of the first exchange-traded funds (ETFs) to tap into the expanding market for NFTs.

The index will follow companies with a stake in the cryptocurrency market.

The U.S. Securities and Exchange Commission approved an ETF that holds Bitcoin futures to begin trading in October, which was the closest authorities have gone to allowing a fund that invests in cryptocurrencies.

While the SEC has denied multiple applications for a spot ETF in recent years, blockchain-themed ETFs have flourished.

The NFTZ fund, according to Sylvia Jablonski, chief investment officer at Defiance ETFs, is a terrific method for investors to acquire exposure to not just the fast-growing blockchain technology component of the digital world but also firms involved in the resurrection of NFTs.

The fund charges a 0.65 percent management fee or $6.50 for every $1,000 invested. Silvergate Capital Corp, Cloudflare, Inc, Bitfarms Ltd, Marathon Digital Holdings Inc, Hut 8 Mining Corp, and Coinbase Global Inc are top holdings.

NFTs were first established a few years ago, but they truly took off this year when the crypto markets exploded.

Holders of art, collectibles, and just about any other item may use NFTs to keep track of who owns what.

According to nonfungible.com, the company’s website recorded 766,000 transactions in the previous month, totaling $1.8 billion.

“NFTs today are what Bitcoin was 10 years ago, except that there is a robust community made up of creators and investors who co-exist to determine the future path of a non-fungible token,” said Jablonski.

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