Quick Take:
- ProShares has filed with the US Securities and Exchange Commission to launch a Metaverse ETF.
- ProShares will join a growing list of companies launching metaverse-themed ETFs.
- The ETF will track the performance of the Solactive Metaverse Theme Index.
ProShares is launching a metaverse-themed ETF. Bloomberg reported on Tuesday evening that the popular Exchange-Traded Fund (ETF) issuer had filed with the US Securities and Exchange Commission (SEC) to launch an ETF that tracks Solactive Metaverse Theme Index.
The index is composed of companies involved in the production or use of technologies that offer products or services for the metaverse, including data processing and metaverse devices. The index’s top three weighted stocks include Apple, Meta Platforms and Nvidia.
ProShares is not the only firm to launch an EFT focused on the rapidly growing metaverse. As of Dec. 28, global metaverse ETF assets rocketed to a total value of $2.2 billion, with a majority of ETFs launching within the last three months.
The Roundhill Ball Metaverse (ticker META), which launched on June 30, now has $916 million in assets under management, while last Month, Canada witnessed two ETFs launch on the same day.
Todd Rosenbluth, director of mutual fund and ETF research at CFRA expects META ETF’s success to attract more ETF launches despite carrying doubts about the longevity of the metaverse story.
“I don’t know if the metaverse theme has legs, but investors believe in it. Given the success of the ETF META, we are likely to see more products come to market that offer a unique twist on this long-term theme,” Rosenbluth said in a statement.
However, while ProShares may be launching its first metaverse theme ETF, it is not the first time it has launched an ETF product targeting the crypto market.
Earlier this year, it became the first firm to win approval from the U.S. SEC to launch a Bitcoin futures ETF, which debuted as the second most heavily traded ETF on record.
On Dec. 7, Defiance ETFs became the first fund manager to launch an ETF linked to NFTs after announcing Defiance Digital Revolution ETF (ticker NFTZ), which now has $10.7 million assets under management.
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