ProShares on Tuesday filed with the U.S. Securities and Exchange Commission (SEC) for an ETF focused on metaverse, called the ProShares Metaverse Theme ETF.
Subject to approval by the SEC, the proposed ETF will track the performance of the Solactive Metaverse Theme Index (SOMETAV), consisting of firms providing or using metaverse-related technologies, including data processing and metaverse devices, the ETF prospectus reads.
Apple Inc., Meta Platforms Inc., and Nvidia Corp. are the index’s top participants
The index includes U.S. companies that are listed on the New York Stock Exchange or The Nasdaq Stock Market and meets certain market capitalization and liquidity requirements, ProShares said. Electronics giants like Apple and Nvidia as well as social media like Meta Platforms, or former Facebook, are reportedly among the index’s top components. Other metaverse companies may be a part of it too.
ProShares’ metaverse ETF filing comes amid global companies increasingly venturing into the metaverse and nonfungible tokens (NFT) industry.
On Nov. 29, two Canadian companies, Evolve Funds Group and Horizons ETFs Management, started trading their metaverse ETFs on the Toronto Stock Exchange. Similar to the ProShares Metaverse Theme ETF, the Horizons Global Metaverse Index ETF is tracking SOMETAV.
Metaverse has been increasingly emerging as one of the biggest technology trends in 2021 amid Facebook officially announcing its metaverse strategy by rebranding its product to Meta in October. The concept of the Metaverse is based on an online virtual environment featuring a broad range of functions like communicating, gaming, trading digital collectibles and NFTs, attending events and others, facilitated via common devices or virtual and augmented reality headsets.
According to a study by Reports and Data, the global metaverse market was worth $48 billion in 2020 and is expected to reach $872 billion in 2028, posting a revenue at the compound annual growth rate of 44%.
Uncertainty still exists
At the same time, in conversation with Bloomberg, Todd Rosenbluth, director of mutual fund and ETF research at CFRA said “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,”.