Quick take:
- Canadian asset management firm CI Global has launched its first-ever metaverse-themed ETF.
- The company said its new ETF will track The CMVX Index.
- CI Global also launched a blockchain exchange-traded fund which tracks The CBCX Index.
Leading Canadian asset management firm CI Global has announced the launch of its metaverse-themed ETF the CI Galaxy Metaverse ETF (CMVX). The ETF will track The CMVX Index, which is based on the performance of the Alerian Galaxy Immersive Digital Worlds Hedged to CAD Dollars Index.
CI is following in the footsteps of leading fund issuers that have already made the leap to add a metaverse ETF to their portfolio of thematic ETFs.
The CMVIX Index targets companies involved in the AR and VR domains, especially those that facilitate the development and usage of AR/VR devices.
The index also includes companies looking to power the metaverse by providing connectivity software and hardware. More importantly, the ETF will also be giving investors exposure to the highly lucrative gaming and entertainment segments of the metaverse, as well as, payments and social media.
Commenting on the company’s latest exchange-traded funds, Roy Ratnavel, Executive Vice-President and Head of Distribution for CI GAM said: “Blockchain and the metaverse are two extraordinarily powerful trends that are set to dramatically change our society and how we do business.”
Ratnavel explained that the two products will give investors an opportunity to capitalise on the leading-edge sector at a relatively low cost. Both ETFs will be available at an expense ratio of 0.50%, which is one of the lowest so far compared with other metaverse-themed ETFs.
Both Indexes are offered by Alerian S-Network Global Indexes, an index builder focused on creating innovative index-based solutions, in partnership with Galaxy Digital Holdings Ltd.
Galaxy Digital is one of the leading providers of investment management services focused on cryptocurrencies and blockchain.
Steve Kurz, Global Head of Asset Management at Galaxy Digital highlighted his firm’s commitment to innovation and asset diversification saying “we’re committed to increasing access to every investable corner of the digital asset ecosystem.”
On the other hand, Rob Hughes, Chief Commercial Officer of Alerian echoed those remarks adding “we are excited to collaborate with CI GAM and Galaxy Digital to meet the demand for more innovative exposures in the metaverse and the broad-based digital asset space.”
The metaverse has become a focal point for thematic fund issuers with ProShares, Fidelity and First Trust all launching their own metaverse ETFs.
More recently, Global X joined the bandwagon with its Global X Metaverse ETF, in which the team predicted the metaverse could be worth $100 billion by the end of 2022.
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