Exchange Traded Concepts, a private-label ETF provider, has submitted an application that seeks to offer an ETF that tracks the performance of NFT-related companies.
Per the documents submitted to the US SEC Thursday, the investment vehicle will track the performance of the Fount Token Economy Index, an index provided by Fount Investment. The index offers exposure to the companies that develop, manufacture, distribute, or sell products or services related to NFTs.
At least 80% of the funds’ net assets will be invested in the token economy companies included in the index, with the rest infusing into investments not included in the tracker. Concerning what companies the index will track, the filing stated:
“…each Token Economy Company’s one year forecasted revenue is reviewed and 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.”
In addition, the companies will also have weight caps such that “no individual stock may represent more than 10% of the Index, and the aggregate weight of each stock representing more than 5% of the Index may not exceed 40% of the Index.”
Founded in 2011, Exchange Traded Concepts (ETC) is a private-label ETF provider registered with the US Securities and Exchange Commission. The firm has been playing around with the nascent industry for quite some time.
ETC launched a ‘Fount Metaverse ETF’ in October last year, which follows an index offering exposure to companies that develop, manufacture, distribute, or sell products related to metaverse technology. As per the latest figures revealed, the instrument has more than $11.5 million in assets under management.