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ProShares plans to leverage the emerging metaverse sector by launching a specialized ETF that tracks companies such as Apple and Facebook.
Exchange-traded funds issuer ProShares plans to venture into the metaverse with a new metaverse-centric ETF, according to reports. ProShares, the first company in the US to launch a Bitcoin (BTC) ETF, now wants to leverage the metaverse. The company filed with the Securities and Exchange Commission (SEC) for the metaverse initiative, dubbed the ProShares Metaverse Theme ETF.
The pending project looks to track the performance of the Solactive Metaverse Theme Index (SOMETAV), upon approval by the SEC. SOMETAV consists of firms that provide or use metaverse-focused technologies, including metaverse devices and data processing. This is according to the ETF prospectus lodged with the Commission.
Furthermore, SOMETAV also includes US firms listed on the New York Stock Exchange as well as the NASDAQ. ProShares explains that the Index must meet specific liquidity requirements and a market capitalization level to remain functional. Among its top components are heavyweight companies such as tech players Apple and Nvidia. Added to these is social media giant Meta Platforms (formerly Facebook).
ProShares’ Metaverse ETF Ambitions Joins Efforts By Other Firms Looking to Tap Into the Space
ProShares’ planned foray into the metaverse is part of a growing global trend of global companies looking to enter the NFT market. The space covers the NFT, Web3 and general blockchain technology markets which make the metaverse possible.
In November, a pair of Canadian firms, Evolve Funds Group, and Horizons ETFs Management, began trading their metaverse ETFs on the Toronto Stock Exchange. Also, just like the planned ProShares Metaverse Theme ETF, the Horizons Global Metaverse Index ETF tracks SOMETAV.
Bloomberg asserts that global metaverse-focused ETF assets are now at $2.2 billion as of December 28th. Bloomberg also stated that a majority of the funds launched in the fourth quarter.
The metaverse holds an increasingly appealing attraction due to its limitless potential and ground-breaking offerings. It is one of the biggest technology trends this year, and even influenced Facebook to rebrand to ‘Meta’ in October. The concept of the metaverse is a futuristic virtual landscape accessed via virtual reality (VR) and augmented reality (AR) methods.
According to Morgan Stanley, the metaverse holds a promising $8 trillion worth of opportunity in the US alone. Another study by research platform Reports and Data states that the global metaverse market had a value of $48 billion this year. In addition, this figure will likely hit $872 billion in about seven years. This works out to revenue at the compound annual growth rate of 44%.
In fact, virtual land plots (similar to how real-world, physical land functions) have already sold for millions of dollars within the metaverse. Furthermore, a broad spectrum of added activities is also accessible within the metaverse. Some of these include communicating, gaming, trading digital collectibles, and NFTs, and attending events.
Recently, Microsoft and Bumble announced plans to build digital worlds broadly based on blockchain technology.