ProShares Takes the Leap into the Metaverse
Just when you thought ETFs couldn’t get any more exciting, ProShares, the trailblazer behind the first Bitcoin ETF in the U.S., is now throwing its hat into the metaverse ring. On Tuesday, they filed a proposal with the U.S. Securities and Exchange Commission (SEC) to create the ProShares Metaverse Theme ETF, and let me tell you, investors should keep their VR headsets at the ready!
The Nuts and Bolts: What Does This ETF Entail?
This proposed ETF plans to track the performance of the Solactive Metaverse Theme Index (SOMETAV). You know, that index that rolls off the tongue just as easily as it sounds complicated? The ETF aims to feature companies either supplying or utilizing the technology underpinning the metaverse. This includes firms in data processing and those gallivanting around with metaverse devices. Fancy, right?
Who’s in the Index?
ProShares mentions that the ETF will be made up of companies listed on major exchanges like the NYSE or NASDAQ, which meet formidable market capitalization and liquidity requirements—because we all know big fish usually make bigger waves. And guess who might find themselves swimming in the same pond? Tech titans like Apple, Nvidia, and social media giant Meta (formerly known as Facebook) are reportedly part of the lineup. Talk about star-studded!
Following the Trend: A Global Movement
Interestingly, this isn’t the only fish frying in the metaverse pan. Just last month, Canadian companies Evolve Funds Group and Horizons ETFs Management jumped onto the metaverse bandwagon by launching their ETFs on the Toronto Stock Exchange. And guess which index they’re tracking? You got it—SOMETAV!
The Rising Tide of the Metaverse
The metaverse isn’t just another tech buzzword; it’s quickly becoming a defining phenomenon of our time. Ever since Facebook rebranded itself to Meta in October, signaling a pivot toward a fully immersive virtual experience, businesses worldwide have taken notice. According to a survey by Reports and Data, this virtual universe was valued at a whopping $48 billion in 2020 and is anticipated to surge to a mind-boggling $872 billion by 2028, growing at an incredible compound annual growth rate of 44%. Raise your virtual glasses to that!
What’s Next for Retail and Institutional Investors?
As the metaverse continues rising, the investment valley could get as crowded as a virtual concert. Retail and institutional investors alike will need to keep their virtual wallets handy if they want to tap into this lucrative market. The ProShares Metaverse Theme ETF could just be the ticket they need to ride this wave, assuming it receives the SEC’s stamp of approval. Keep your eyes peeled!
