The first-ever ETF focused on NFTs is set to wind down at the end of the month, as a prolonged downturn in crypto continues to bite.
The fund, which was launched at the end of 2021 by Defiance Digital, will liquidate its portfolio assets mid-February, according to a company press release. It had tracked crypto companies as well as an NFT index.
The fund's CEO and CIO Sylvia Jablonski told Bloomberg News that it had failed to attract assets.
The move comes despite a glimmer of hope in the market. NFT sales saw a slight uptick in December, rising 13% to break an eight-month streak of declines, according to The Block's data dashboard. The rise was attributed to tax loss harvesting and notable companies in the space bringing out new products.
Meanwhile, digital asset-focused trading funds comprised the top 14 equity exchange traded funds (ETFs) in 2023 (excluding leveraged funds), according to reports.
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