In comparison, the Ark Innovation ETF (ARKK), which is the largest thematic ETF, manages $9bn.įurthermore, the oldest metaverse ETF (METV) has a 97% market share, which highlights the first-mover advantage in the ETF space. Having said this, some of the newer products like the Fidelity Metaverse ETF (FMET) are cheaper as it has become a crowded space, where price competitiveness matters.Īlthough there are already seven ETFs providing exposure to the metaverse, their combined assets under management are only $650m, which seems somewhat small compared to the media attention the metaverse has received in the last 12 months. The average management fees of the seven ETFs is 0.60%, compared to 0.15% for a Nasdaq 100 ETF like QQQM. These ETFs can be characterised as thematic ETFs, which is reflected in their fees. The Steven Spielberg movie Ready Player One often gets referenced as a vision for the metaverse. The most common vision is a virtual reality environment that is accessed via goggles or headsets. There is no common agreement on what the metaverse represents, even amongst the developers and companies building the infrastructure or applications for it. We focus on ETFs trading in the US that specialise on the metaverse, which is a universe of 7 instruments. In addition to METV, there have been a further six ETF launches in the US over the last 12 months that aim to provide exposure to the metaverse. The purchase price was undisclosed, but it is difficult to imagine a better buyer than a corporation run by a future-focused founder that has a market cap north of $600bn and $16bn of cash. Somewhat unsurprisingly, the Roundhill Ball Metaverse ETF changed its ticker from META to METV in January 2022, and sold META to Meta Platforms. Roundhill subsequently launched a European-listed version of METV in March this year, the Roundhill Ball Metaverse UCITS ETF (METV). Specifically, it was before Facebook changed its name to Meta Platforms to emphasise its new focus on the metaverse. The product was launched in June 2021, which was well before the metaverse become the new playing field for crypto startups and tech giants. However, the best ticker of recent years must have been META of the Roundhill Ball Metaverse ETF (METV). TAIL is tough to beat for a tail-risk fund. Anyone looking for a gold ETF is bound to come across State Street Global Advisors’ GLD, similar to OIL for getting exposure to oil. Yet not only is the Subversive fund shunning Meta, despite counting major industry players among its components - it also has taken a small short position against the stock.Finding the right ticker for an ETF launch is critical for issuers as these have an outsized impact on the fortune of the ETF. Currently leading is the Roundhill Ball Metaverse ETF, which manages about $822 million in assets. Global metaverse-related ETFs have grown to over $2 billion since Meta's rebrand, with most products launching only in recent months, according to Bloomberg. Keanu Reeves - who holds cryptocurrency himself - said in December: "Can we just not have metaverse be, like, invented by Facebook?" Many in the crypto community worry their vision of a free, decentralized virtual world is in danger. The move sparked a rally in metaverse cryptocurrencies, driven by retail and institutional investors, and focused Wall Street's attention on the potential of the emerging industry.īut fears sprang up almost immediately that the tech giant's industry heft and deep pockets could allow it to dominate the metaverse, just as it has become prominent in social media. It's listed on CBOE's BZX exchange with the ticker symbol "PUNK," in a reference to the popular CryptoPunk NFT collections.įacebook changed its name in October to Meta, in a corporate shift to focus on immersive digital worlds. The actively managed Subversive fund, which launched Thursday in the US, tracks globally listed stocks in companies involved in metaverse infrastructure and applications. "Mark and his team are not the best custodians of our digital futures," he said. "Facebook seems to be the antithesis of what actual consumers want their digital futures to look like," Subversive Capital Advisor founder Michael Auerbach told Bloomberg in an interview published Thursday. Given that, the creators of the Subversive Metaverse ETF believe the tech giant just doesn't make a good poster boy for the emerging sector. The former Facebook has run into a lot of resistance from crypto die-hards as it stakes out its turf in the metaverse, and even Hollywood star Keanu Reeves has spoken up. A punky new exchange-traded fund wants to invest in everything related to the red-hot metaverse - but not Mark Zuckerberg's Meta.
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