New world – Metaverse is attracting the interest of a growing number of investors. This company dives into it by launching an exchange-traded fund (ETF) following the performance of companies whose activities revolve around these virtual worlds, with potential considered colossal.
A real ETF from Proshares, for virtual worlds
On December 28, 2021, the company ProShares files an application with the US SEC, for an exchange-traded fund, the ProShares Metaverse Theme ETF, which tracks the performance of the Solactive Metaverse Theme Index (SOMETAV).
The latter is made up of companies, some of which are listed on the New York Stock Exchange or the Nasdaq, which provide or use metaverse-related technologies, including data processing and metaverse devices. SOMETAV would include giants in their sector such as Apple, Nvidia, or even Meta (formerly Facebook).
ProShares was the first to receive the green light from the SEC in October 2021 to launch an ETF linked to the bitcoin futures contract (BTC).
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ETF and metaverse: what future for these virtual universes?
ProShares is not alone in seeing the value of a metaverse-focused ETF. The company is from elsewhere overtaken by two Canadian companies, Evolve Funds Group and Horizons ETFs Management, which launched the first Metaverse ETF in Canada, also following SOMETAV, which has been trading since November 29, 2021 on the Toronto Stock Exchange.
A study by Reports and Data indicates that the global metaverse market was worth $ 48 billion in 2020. This figure is expected to reach 872 billion dollars in 2028. The craze for metaverse continues to grow, with a Facebook helping democratize the concept by changing its name to Meta and unveiling its strategy in the field.
The metaverse does however not unanimous among tech personalities. The founder of Tesla and SpaceX, Elon Musk, for example, displayed his skepticism about the future of these virtual worlds.
Will the SEC find objections to launching a Metaverse ETF? Or will it also take its time before making a decision just as it did with bitcoin ETFs? Metaverse is expected to grow exponentially in the coming years, with promising new ones to join current virtual worlds, like The Sandbox, already enjoying great success.
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