Quick take:
- Europe’s first metaverse exchange-traded fund will debut at the London Stock Exchange.
- The ETF is offered by ETC Group in collaboration with HANetf.
- The ETF will track the Solactive ETC Group Global Metaverse index that has exposure to 51 companies involved in the metaverse.
Europe is about to get its first metaverse ETF this month that will track over 50 companies with exposure to the trendy buzzword, the metaverse.
The emerging technology tracking company ETC Group has collaborated with thematic ETF firm HANetf to launch the metaverse exchange-traded fund, which will track the Solactive ETC Group Global Metaverse index listed on New York’s Arca exchange, a specialist exchange for ETFs.
Commenting on the announcement, Bradley Duke, co-CEO of ETC Group said investors had expressed insatiable demand for the metaverse-related products, making it impossible to ignore.
“It has gone from an obscure, theoretical idea to being variously described as everything from the evolution of virtual reality to the next iteration of the internet,” he said, adding that the ETF will offer its investors exposure to the exciting investment opportunity created by the metaverse.
On the other hand, HANetf co-founder Hector McNeil said the decision to list the ETF at the LSE was to open the fund to new investors drawn from Europe.
“London is one of the most developed and liquid markets in Europe and has a strong asset and wealth management sector, as well as being a good venue for global investors outside of Europe,” he said, adding that it was important for the fund to be listed on the LSE in order to be relevant to the targeted investor community.
The metaverse is one of the most exciting places to invest after Morgan Stanley and Goldman Sachs estimated the industry to be potentially worth $8 trillion.
This is not the first listing of an ETF that tracks metaverse and NFT companies. Last December, Defiance launched the NFTZ ETF on the NYSE, becoming one of the first major fund management companies to offer an exchange-traded fund focused on the new industry.
ProShares also filed with the SEC to launch a metaverse-themed ETF late last year.
In October last year, BITO became the first Bitcoin Futures ETF to be approved by the US Securities and Exchange Commission, opening the door for more crypto-related exchange-traded funds.
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