Alternative Investments/Digital: New ETF To Invest In The Token Economy (Read: NFTs)
The proposed ETF is titled the Fount Token Economy ETF.
There is another ETF lining up to offer investors to the world of non-fungible tokens, or NFTs. The Fount Token Economy ETF will focus on “token economy companies” that develop, manufacture, distribute, or sell products or services around NFTs in the sectors of arts and entertainment, games, blockchain and related platforms and infrastructure. (Blockworks)
The filing for the ETF defines NFTs as “unique and non-interchangeable units of data stored on a blockchain and are associated with the ownership of unique photos, videos, audio, and other types of collectible digital files.”
The Fount Token Economy ETF
To be issued by private label ETF house Exchange Traded Concepts, the new ETF would track the Fount Token Economy Index.
Only companies that are expected to derive more than 50% of their revenue from a Token Technology Sub-Industry may be included in the Index. The top 50 securities by market capitalization are selected for the Index, with a minimum market capitalization of $300 million required for initial inclusion. Index constituents must also have an average daily dollar trading volume of at least $5 million over the most recent three months.
The ETF would invest at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of Token Economy Companies included in the Index.
The ETF would be managed by Andrew Serowik, Todd Alberico, and Gabriel Tan, all portfolio managers of Exchange Traded Concepts, LLC, the investment adviser to the fund.
Previously, Exchange Traded Concepts launched the Fount Metaverse ETF (MTVR) in October. Year-to-date, the ETF is down 20.73%.
In December, Defiance launched Defiance Digital Revolution ETF (NFTZ), the first ETF Focused on NFTs, NFT, blockchain and crypto stocks, including NFT marketplaces and issuers.
Year-to-date, the ETF has lost 30.47%.
Related Story: Defiance Launches The First NFT-Focused ETF
Latest Alternative Investment News
Klarna, the Swedish fintech known for its buy-now-pay-later (BNPL) financial product, is negotiating to raise $650 million at a valuation of $6.5 billion, which is a very sharp comedown from…
Fintech OppZo brings together investors and small businesses that need working capital loans for their government-facing businesses. Typically located in economically stressed areas of the country, these businesses represent an…
The Jacobi Bitcoin ETF, from Jacobi Asset Management, will have a number of firsts to its credit when it starts trading this month. It will be the first exchange-traded equity…
John Deere (NYSE: DE) has achieved leadership in automated machinery powered by Artificial Intelligence (AI). The self-driving tractor pictured above was revealed in CES 2022 and has six pairs of…