A Canberra punk musician has pleaded not guilty to the murder of a popular local music fan, Nicholas Sofer-Schreiber.

Watson man Christopher David Navin, 27, was arrested and charged on Friday after a seven-week murder investigation led police to a property in Grafton, in northern New South Wales.

Sofer-Schreiber, 27, who was legally blind, was found dead in his Lyneham townhouse on December 28 after not being heard from since Boxing Day.

His friends entered the house and found his body with multiple stab wounds.

Sofer-Schreiber and his accused killer moved in the same circles and were both passionate advocates of Canberra's independent music scene.

Navin did not say anything during his appearance at the ACT Magistrates Court and police have not revealed a motive for the alleged murder.

There was an audible gasp from the public gallery when the plea of not guilty was read out.

A large group of friends and family were at the court hearing.

Outside the court they thanked police for their efforts and expressed relief that a suspect had been taken into custody.

Fundraising for punk festival in victim's honour

Murdered Lyneham man Nicholas Sofer-Schreiber. ( Supplied: ACT Policing )

There has been an outpouring of grief and support among Sofer-Schreiber's tight-knit circle of friends, with funds being raised for a punk festival to be held in his memory.

Sofer-Schreiber, who was an orphan, was affectionately known as "the ginger ninja".

He is being remembered as a generous and fun-loving man.

Navin is also a well-known fixture on the Canberra music scene, and had been playing in punk and hardcore bands since he was a teenager.

He also often reviewed bands in the local street press and had set up his own record label.