On Thursday, registered investment adviser and fintech firm Defiance appear information technology has launched the first nonfungible token (NFT)-focused substitution-traded fund (ETF) on the New York Stock Substitution Arca. The fund is listed under the ticker symbol NFTZ and has a management fee of 0.65% per year.

The fund does non directly buy and concord NFTs to store in wallets. Instead, it tracks an index of companies operating or intending to venture into the NFT space, besides every bit the Metaverse. The BITA NFT and Blockchain Select Index, which the fund intends to mirror, is maintained by Deutschland-based fintech visitor BITA.

Notable holdings in the fund include Coinbase, Cloudflare, Plby Grouping [Playboy], Marathon Digital and Hut eight Mining. Its biggest holding is Silvergate Capital, at 6.74% of its net assets. Unbeknownst to near investors, Silvergate is one of the world'due south largest gateway for crypto to fiat transactions among centralized cryptocurrency exchanges and financial institutions. During the third quarter alone, Silvergate helped facilitate over $162 billion worth of such transactions. The NFTZ ETF holds a total of 34 companies in its portfolio.

Regarding the announcement, Sylvia Jablonski, co-founder and chief investment officeholder of Defiance, said:

The NFT revolution volition fundamentally change the economical model for artists, athletes, creators and many more industries that we can't even conceive of today. NFTs could be bigger than the cyberspace.

Related: Invesco launches spot Bitcoin ETP on Deutsche Borse

In addition to the NFTZ, the fintech house likewise plans to launch a basket of ETFs tracking the latest information applied science and biotech developments. Notable highlights include its 5G, psychedelic, next-generation hydrogen, and quantum computing ETFs.