In late November 2021, two Canadian metaverse ETFs began trading on the Toronto Stock Exchange (TSE) on the same day. The first firm in the US to launch a Bitcoin exchange-traded fund (ETF), ProShares, is looking into the metaverse space as it now aims to unleash a new metaverse-focused ETF.
On December 29, ProShares filed with the United States Securities and Exchange Commission (SEC) for an ETF that focused on metaverse, known as the ProShares Metaverse Theme ETF. Once it gets approval from the SEC, this proposed ETF will track the performance of the Solactive Metaverse Theme Index (SOMETAV).
SOMETAV will comprise companies that offer or use metaverse-related technologies, including data processing and metaverse devices, as highlighted in the ETF prospectus. This index will consist of US firms listed on the New York Stock Exchange (NYSE) or The NASDAQ Stock Market and meets various market liquidity and capitalization requirements, as explained by ProShares.
Electronics giants like Nvidia and Apple together with social media like Meta Platforms (formerly Facebook) are allegedly among the index’s top components. ProShares’ metaverse ETF filing has come amid global firms mainly venturing into the metaverse and the NFT sector.
On November 29, Horizons ETFs Management and Evolve Funds Group, two Canadian firms, started trading their metaverse ETFs on the Toronto Stock Exchange (TSE). Just like the ProShares Metaverse Theme ETF, the Horizons Global Metaverse Index ETF also confirmed that it will be tracking SOMETAV.
Metaverse is emerging as one of the largest technology trends in 2021 after Facebook unveiled its metaverse strategy after rebranding its product to Meta in October. The Metaverse concept is based on an online virtual space that consists of a wide array of functions including gaming, communicating, attending events, trading NFTs and digital collectibles, and many other activities.
The metaverse is facilitated through common devices and virtual or augmented reality headsets. Based on a study by Reports and Data, the global metaverse market was valued at $48 billion in 2021. It is expected to reach $872 billion by 2028, posting revenue at the compound annual growth rate of around 44%.
