Global X Launches Metaverse ETF, Sees Market Exceeding $100 Billion in 2022

Global X has joined a growing list of fund issuers after debuting the Global X Metaverse ETF (VR) on Nasdaq on Thursday.
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Quick take:

  • Global X ETFs has become the latest fund issuer to jump on the metaverse train.
  • The firm on Thursday launched the Global X Metaverse ETF (VR) on Nasdaq.
  • Global said it expects the metaverse market to grow by more than 50% in 2022 from 2021, exceeding $100 billion.

Global X ETFs has joined the list of leading fund issuers that have leapt into the metaverse craze after launching the Global X Metaverse ETF (VR). The company said its new thematic ETF is designed to provide exposure to companies that are positioned to benefit from the development and commercialization of the metaverse.

Such companies include those involved in both software and hardware segments of the industry including extended digital realities, creator platforms, and creator economies. Other companies that could play a crucial role in scaling the adoption of the metaverse include semiconductors, cloud computing technology, and 5G infrastructure providers.

Global’s metaverse ETF comes at the back of a series of several thematic ETFs launched by fellow fund issuers in a bid to capitalise on the explosive growth of the industry.

ProShares announced its metaverse-themed ETF late last year, before debuting it on the Nasdaq last month, while the UK-based ETC Group collaborated with HANetf to launch a metaverse ETF tracking ETC Group Global Metaverse index listed on New York’s Arca exchange.

In April, Fidelity launched the Fidelity Metaverse ETF (FMET) alongside an interactive metaverse platform “The Fidelity Stack” to onboard young investors. Another top exchange-traded fund issuer First Trust, launched First Trust Indxx Metaverse ETF (ARVR), expanding its portfolio of thematic ETFs.

The Companies are introducing their clients to the new series of ETFs to ensure they do not miss out on an opportunity that some market analysts predict could be worth about $1.5 trillion by 2029.

Global media conglomerate Bloomberg’s research arm recently published a report predicting the metaverse could be worth $800 billion by 2026, while leading global investment banks Morgan Stanley, Goldman Sachs and Citigroup estimate the Web3-based industry could be worth $8 trillion overall, up to $13 trillion.

In trying to explain the reasoning behind its new ETF, Global X pointed out the number of times the word metaverse was mentioned in recent earnings announcements.

Meta Platforms, formerly Facebook mentioned it 11 times, while Microsoft, which acquired Activision Blizzard for $69 billion earlier this year in a strategic approach to the metaverse mentioned the trendy buzzword 7 times. 

Overall, the world metaverse has been mentioned more than 240 times during earnings announcements, which Global X thinks points to the level of importance publicly traded companies are attaching to the industry.

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