Quick take:
- Bitwise has launched a web3-focused exchange-traded fund, Bitwise Web3 ETF (BWEB).
- The new ETF will be based on the Bitwise Web3 Equities Index.
- The index invests in companies operating in blockchain infrastructure, DeFi, finance, the metaverse and digital worlds.
Bitwise has announced the launch of its web3-focused exchange-traded fund (ETF), Bitwise Web3 ETF (BWEB). The asset management company said its new ETF will be based on the Bitwise Web3 Equities Index. The index tracks companies operating in blockchain infrastructure, DeFi, finance, the metaverse and digital worlds.
The metaverse is a 3D virtual space that allows users to interact in immersive worlds through gaming, virtual concerts and other experiential events.
The BWEB ETF will be available at an expense rate ratio of 0.85. It has already started trading NYSEArca according to an SEC filing on October 4.
According to the announcement published on the page dedicated to the fund on the Bitwise website, the fund is specifically targeting the web3 creator economy, which includes segments like metaverse gaming, NFTs and governance.
The index offers exposure to 40 companies with more than 85% “directly linked to business activities associated with one or more key areas of growth in web3,” a statement on the Bitwise website reads.
“With the Bitwise Web3 ETF, we’re excited to give investors the opportunity to capture one of the fastest-emerging themes in technology through a diverse mix of companies that we believe will lead the charge,” Bitwise Chief Investment Officer Matt Hougan said in a statement.
Bitwise is joining several fund management companies that have jumped on the web3 train with thematic funds targeting the creator economy.
Proshares and First Trust were among the first to launch metaverse-themed ETFs. On the other hand, Fidelity Investments launched a metaverse ETF accompanied by a metaverse-based resource targeting the younger generation of investors.
Recently, Franklin Templeton announced a metaverse fund in a bid to take advantage of the burgeoning industry.
According to McKinsey, the metaverse could grow to a value of $5 trillion by 2030, while Citigroup predicts a valuation of up to $13 trillion.
Exchange-traded funds offer a cautious way for mainstream investors to benefit from the projected growth.
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