The first-Ever Exchange-Traded Fund Focusing On NFTs And Metaverse Assets Has Declared Its Closure.

As the crypto cold claims more victims, the first-ever exchange-traded fund focusing on NFTs and metaverse assets has declared its closure.

According to a recent press statement, the Defiance Digital Revolution ETF, which trades on the NYSE under the symbol NFTZ, will be delisted by the end of February. Beginning February 16, the fund will begin liquidating its portfolio assets and will no longer accept orders for new creation units.

“Prior to the Liquidation Date, shareholders may only be able to sell their shares to specific broker-dealers, and there is no assurance that a market for the Fund’s shares will exist during that time period,” according to the notice.

The fund, which will be launched in December 2021 by Defiance ETFs, is designed to track the BITA NFT and Blockchain Select Index, an index that tracks blockchain-related companies and non-fungible tokens. Since its inception, the fund’s shares have fallen by more than 72%.

The fund’s liquidation comes as the euphoria surrounding NFTs and metaverse assets has waned substantially over the last year, owing to the larger market collapse, which has seen major cryptocurrencies such as Bitcoin and Ethereum lose almost 70% of their value compared to all-time highs.

According to NFT experts at Casinos En Ligne, non-fungible token sales fell 83 percent year on year in 2022. Furthermore, NFT transaction volume fell by at least 83 percent across all markets, including art, gaming, and collectibles.

In January 2022, the NFT market reached an all-time high, with monthly sales topping $2.8 billion. However, that figure fell precipitously earlier this year as a result of a succession of bankruptcies and implosions that saw about $2 trillion wiped out of the crypto market.

Despite the NFT market’s devastation, a number of high-profile corporations have stated plans to grow into NFTs. Amazon has announced intentions to start a “digital assets enterprise” centered on non-fungible tokens and Web3 gaming this spring.

A patent application in November disclosed Sony’s concept for a system that could trace the creation, use, and transfer of digital assets made within a game. A system for “generating, altering, tracking, authenticating, and/or transmitting unique digital assets” linked with video games is described in the patent.

Furthermore, with three new trademarks filed in December of last year, investing behemoth Fidelity hinted at an intention to expand further into cryptocurrencies and Web3. The filings are heavily focused on NFTs and virtual worlds such as the Metaverse.

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