Rumors have surfaced about the potential launch of an exchange-traded fund (ETF) tracking the top non-fungible token (NFT) collections. The speculation was fueled by a tweet from Pudgy Penguins CEO Luca Netz, suggesting that an NFT ETF was in the works. However, ETF issuers and market experts have expressed skepticism about the viability of such a fund due to concerns about the illiquidity of NFTs and traditional investors viewing them as "nonsense." The technical challenges of creating an NFT ETF include constructing pricing methodologies and navigating the illiquid assets, which make price discovery and market-making difficult. While some experts believe an NFT ETF is possible in the future if the sector matures and gains more liquidity, they believe it is unlikely to happen anytime soon. Nonetheless, market participants believe that an NFT ETF would bring legitimacy and potential growth to the NFT market.



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