- Defiance Digital’s first-ever NFT-based ETF is winding down at the end of January 2023.
- The Defiance Digital ETF will be liquidated on February 28, 2023, before shutting the business down.
- The fund’s CEO and CIO said the fund was unable to attract investors.
At the end of January, the first-ever NFT-focused ETF will come to an end as the long-running crypto downturn continues to hurt.
According to a press release from the company, the fund, which was established by Defiance Digital at the end of 2021, will liquidate the assets in its portfolio in the middle of February. It had been tracking NFT indexes as well as crypto firms.
Defiance ETFs, LLC, the investment adviser of the Defiance Digital Revolution ETF, has recommended to the Board of Trustees of ETF Series Solutions that the Fund be closed and liquidated on February 28, 2023, immediately following the close of business. The NYSE Arca, Inc. is where the fund’s shares are listed.
Bloomberg News reported, the fund’s CEO and CIO, Sylvia Jablonski, shared that the fund had trouble attracting investors.
The action is taken despite the market showing some signs of life. The Block’s data dashboard shows that NFT sales experienced a small rise in December, increasing 13% to end an eight-month slump. The increase was attributed to tax loss harvesting and new products released by well-known players in the industry.
As per sources, the top 14 equity exchange-traded funds (ETFs) in 2023 (excluding leveraged funds) were trading funds with a focus on digital assets.
Moreover, around February 16, 2023, the fund will start liquidating the assets in its portfolio. This will result in the fund holding more cash and straying from the investing goals and plans outlined in the prospectus.
After the close of business on the day prior to the liquidation date, the fund will no longer accept orders for new creation units, and trading in fund shares will end before the market opens on the liquidation date.
There is no guarantee that there will be a market for the fund’s shares during that time period, and shareholders may only be able to sell their shares to specific broker-dealers prior to the liquidation date. Typical brokerage fees may be charged in such transactions.