The Defiance Digital Revolution ETF, the first exchange-traded fund focused on NFTs and metaverse assets, will close down by the end of February 2023.

The fund is listed on the NYSE under the ticker NFTZ and tracks the BITA NFT and Blockchain Select Index.

It launched in December 2021 and shares have declined 72% since then. The closure of the fund is due to the cooling of the NFT and metaverse assets market and a general downturn in the crypto market.

Sales of NFTs saw a 83% YoY drop in 2022 and a drop in transaction volume across art, gaming, and collectibles.

Despite the market downturn, high-profile companies such as Amazon, Sony, and Fidelity are still showing interest in expanding into NFTs and the Metaverse.