The Defiance Digital Revolution ETF, the first ETF focused on NFTs and metaverse assets, will close by the end of February.
The fund’s portfolio assets will start liquidating on February 16 and will not accept new orders after that day.
Launched in December 2021, the ETF is down 72% since its debut, due to the cooling hype over NFTs and metaverse assets and the broader market downturn that has seen major cryptocurrencies like Bitcoin and Ethereum lose 70% of their value.
NFT sales fell 83% YoY in 2022, and NFT transaction volume across all markets plummeted 83%.
Despite the NFT market bloodbath, major companies such as Amazon and Sony plan to expand into NFTs, and investment giant Fidelity has hinted at a deeper push into cryptocurrencies and Web3 with its three NFT-focused trademarks filed in December.
