NFT-ETF: NFT trend hits the stock market: First NFT-ETF begins trading – with a catch | news

• Disney, adidas & Co. enters the NFT industry
• NFT ETF launched on NYSE
• Huge potential possible

NFT trading is taking off

NFTs are currently all the rage. The digital collectibles are publicly available, but interested parties can acquire ownership of the non-fungible tokens, which are in turn stored on the blockchain. While digital goods were still largely unknown at the beginning of the year, more and more companies are also offering exclusive content like NFT – making the trend socially acceptable. For example, the American media group Disney launched its own NFT collection consisting of digital collectible figures for the second anniversary of its own streaming service Disney+. Recently adidas has also entered the NFT market.

First, the NFT-ETF finds its way to the exchange

With the first NFT-ETF, fans of the technology surrounding the digital collectibles should now also be able to invest in the trend without buying the rights to them themselves. The exchange-traded fund was launched by ETF manager Defiance, whose financial products already follow trends such as 5G technology, SPACs, hydrogen and psychedelics. Under the ticker NFTZ, investors should now also be able to take advantage of the NFT trend. However, the fund is not itself invested in NFTs, but buys, among other things, shares in listed companies that are involved in the NFT market. “NFTZ targets companies involved in NFTs, blockchain and cryptocurrency ecosystems and communities,” Defiance writes on its website. “Together they form the aspects of an NFT marketplace set to take the world by storm.”

In addition to tech companies like Cloudflare, the NFT ETF also includes papers from crypto trading platform Coinbase, but also from companies that have already offered NFTs for sale, including Playboy, Funko and DraftKings. The ETF has been listed on the US stock exchange NYSE since 2 December.

Alternative to traditional assets

With its ETF on NFT companies, Defiance sees itself as up to date, especially because a strong generational change can be observed in stock trading, as Sylvia Jablonski, chief investment officer and co-founder, explains in an interview with Yahoo Finance. “The next generation of traders are not like the traditional money managers. These people are interested in things that allow them to connect and create and be a part of something.” This means that the focus of younger investors is no longer just on traditional assets. “The NFT world has created this sense of ownership of digital assets that has fundamentally changed the culture and the market for things other than stocks and currencies,” Jablonski said.

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Similar potential to Bitcoin & Co.?

An entry into the ETF could be worthwhile as the market has enormous potential, as Jablonski explains. “I think investments in NFTs will be as big as investments in cryptocurrencies.” According to the Defiance co-founder, a look at similar financial products such as the Metaverse ETF from Roundhill Investments also speaks for this. The fund aims to give investors financial exposure to Metaverse, which is seen as the successor to the current internet landscape and aims to connect the virtual and real worlds. Included are companies in computing, virtual platforms, interoperability, payments, digital assets and hardware. The largest positions in the META ETF include NVIDIA, Roblox, Microsoft and Facebook parent Meta. “If you take the Metaverse ETF as a benchmark, people have invested in it even though Metaverse doesn’t exist yet,” Jablonski continues. “I would say that it is very realistic to expect a similar path of prosperity for NFTZ that META has seen.”

According to data from the decentralized application platform DappRadar, referenced by Yahoo Finance, the NFT market could top $20 billion by the end of the year. In comparison, the entire crypto market is currently worth $2.25 trillion according to CoinMarketCap (as of December 12, 2021). It remains to be seen whether the trend will develop as strongly as the hype surrounding Bitcoin & Co.

Editor finanzen.net

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