As additional issuers strive to enter the market segment, ProShares, the asset manager that launched the first bitcoin futures ETF in the US, now offers a metaverse ETF.
The business, which unveiled its Bitcoin Strategy ETF (BITO) in October, originally hinted at its ambitions for a metaverse-focused offering in December.
The ProShares Metaverse ETF (VERS) began trading on the NYSE Arca on Thursday, according to the company. The fund has a 58 basis point cost ratio.
“The metaverse may have the same influence on society as the internet or the mobile phone, and the investment opportunity may be just as tempting,” ProShares CEO Michael Sapir said in a statement.
The Solactive Metaverse Theme Index, which consists of 40 companies, is tracked by the ETF. It comprises gadget manufacturers, data processors, and social media and gaming platforms.
Apple is the ETF’s largest investment, accounting for around 8% of the total, followed by Alphabet, Microsoft, Meta Platforms (previously Facebook), and NVIDIA.
“Anything from a work meeting to time with family might take place in the metaverse in the not-too-distant future, and VERS gives investors with an easy method to access the potential growth,” said Scott Helfstein, ProShares’ executive director of thematic investment.
VERS joins the Metaverse ETF (METV) of Roundhill Investments, the Fount Metaverse ETF (MTVR) of Exchange Traded Concepts, and the Metaverse ETF of Subversive Capital (PUNK). Unlike its competitors, the latter offering includes a short position in Facebook parent firm Meta Platforms.
According to Roundhill’s website, METV debuted in June of last year and has grown to $726 million in assets. MTVR and PUNK, which launched in October and January, respectively, have a combined asset value of around $10 million.
According to Lara Crigger, managing editor of ETF Trends and ETF Database, the metaverse is “a little thin on the ground when it comes to investability” as of January.
According to FactSet statistics, the Roundhill fund has returned -30% year to date as of March 15.
There will be more metaverse ETFs in the future. First Trust, Fidelity Investments, and Global X have all registered with the Securities and Exchange Commission to launch space funds.
According to ETF.com, ProShares manages over $60 billion in assets across approximately 140 ETFs in the United States.
Since BITO’s October debut, when it raised over $1 billion on its first day of trading, the fund’s inflows have stopped.