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Metaverse ETFs: Unlock The Potential Of Thematic Investing

By Vishakha Thakur

The web3 world has been brimming with optimism ever since the launch of Bitcoin Exchange Traded Funds (ETFs). The impact of this burgeoning optimism was evident in the Defi world, with metaverse gaming tokens or altcoins gaining traction. 

Recently, a European asset manager, ETC Group, launched a metaverse ETF in France. For all those wondering what metaverse ETFs exactly are, dive into this article to get all the answers and additional details.

What are metaverse ETFs?

If you’re a fan of virtual digital assets, you should be aware of Bitcoin ETFs, which provide exposure to Bitcoin. Essentially, you can possess or gain exposure to a digital asset without actually owning it.

Similarly, Metaverse ETFs offer exposure to Metaverse or Metaverse-related enterprises. These financial products or funds enable all investors to invest in internationally listed companies that primarily provide services and products to help develop and maintain the metaverse’s entire infrastructure, as well as companies involved in the development or use of Metaverse-related technology such as virtual reality, augmented reality, blockchain technology, gaming, social media, and other related fields.

Investors use ETFs, such as metaverse ETFs, to diversify their portfolios without having to examine every possible stock. Metaverse ETFs can be classified as thematic ETFs.

Thematic investing can be defined as performance-chasing through a narrative. The latter is true for metaverse ETFs, as evidenced by the majority of significant corporations unveiling metaverse initiatives. Metaverse ETFs contain some of the world’s most notable technology companies, giving investors simple access to this growing market. 

Which companies offer Metaverse ETFs?

There are several asset managers that offer Metaverse ETFs or exposure to Metaverse-related companies. Some of them are listed below:

• Proshares Metaverse ETF (VERS)
• The Roundhill Ball Metaverse ETF (METV)
• Fidelity Metaverse ETF (FMET)
• The ETC Group ETF (HAN)

Proshares Metaverse ETF (VERS): 

This ETF tracks an index of global equities from a variety of industries that stand to benefit from the development and application of the metaverse.

Roundhill Ball Metaverse ETF (METV): 

The ETF invests in firms that create and use virtual worlds, augmented reality, and other metaverse-related technologies.

Fidelity Metaverse ETF (FMET):

Aims to replicate the performance of the Fidelity Metaverse Index, a global network of companies involved in the creation, production, distribution, or sale of products or services related to the creation and functioning of the metaverse. 

ETC Group ETF (HAN):

This ETF is launched by France-based asset manager ETC Group and offers exposure to 51 companies active in the metaverse industry.

Now, you must be wondering about how to select an appropriate Metaverse ETF. 

How do I choose a Metaverse ETF?

There are a lot of metaverse ETFs to choose from. Before choosing a Metaverse ETF.

• Listed Assets
• Liquidity
• ETF Focus
• Fees

Listed assets: 

Each Metaverse ETF invests in a certain set of assets, and you should always look into all of them. Be on the lookout for Metaverse’s leading innovators, such as Meta, Roblox, and NVIDIA.

Liquidity: 

It is very important to consider the daily traded units of the ETFs, as well as the liquidity of individual assets.

ETF Focus: 

If an investor is unfamiliar with the Fintech Industry, it is critical that they completely understand the niche in which they are investing. 

Fees: 

Different ETF funds have varying fees, so it’s crucial to evaluate them before deciding which one to invest in.

What are the benefits and risks associated with metaverse ETFs?

Although the metaverse sector is still in its early stages, experts predict significant expansion in the coming years. Investing in a metaverse ETF can provide exposure to a developing industry with the potential for rapid growth.

There are additional benefits, including diversification, convenience, and the possibility of larger returns. Metaverse ETFs provide exposure to a wide range of companies linked to the metaverse industry. Investments can also be a convenient option for all investors because they eliminate the need for rigorous study.

But, not to forget, investing in an emerging industry can be risky at times as technology is booming, but we are currently not in the phase where one can predict the future.

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