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

Widely touted as the world's first non-fungible token ETF, the NFTZ exchange-traded fund has announced its liquidation..

Definance ETFs says it will liquidate the fund by February 28th and will no longer accept unit creation orders.. However, prior to the liquidation date, shareholders have the right to sell their shares to certain brokers.

NFTZ allowed its investors to have stakes in several companies that were in any way connected to the NFT industry.. However, during the crisis in the cryptocurrency market, the interest of investors has noticeably decreased.. Therefore, Definance management decided to close the fund. The liquidation procedure will begin on February 16.

According to Definance ETFs CEO Sylvia Jablonski, the fund failed to raise new assets – investors have become much more selective both in terms of digital assets and in 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.