Slow liftoff for BetaShares Metaverse ETF as it makes ASX debut

Betashares launches a Metaverse ETF tracking the Bloomberg Metaverse Select Index
~$230k of traded volume for Metaverse on day one in what BetaShares describes as a long term play
Record debuting Betashares Crytpto Innovators ETF up more than 50% on back of bumpy crypto July rally

BetaShares is hedging bets the Mark Zuckerberg’s dreams of building a utopian Metaverse will take off, today launching the BetaShares Metaverse ETF (ASX: MTAV) on the ASX.

It saw ~$230k of traded volume on day one, of trade, much less than the Betashares Crypto Innovators ETF (ASX:CRYP), which broke an ETF record when it listed on November 4, 2021 attracting more than $8 million within 45 minutes and ~$30 million on the first day.

The Aussie-first ETF aims to track the Bloomberg Metaverse Select Index and currently offers exposure to a portfolio of 32 leading companies that generate a meaningful amount of their revenues from activities related to the Metaverse.

“MTAV provides exposure to both large, profitable technology and entertainment companies, as well as more specialised companies with a focus on the core technologies that will enable the Metaverse,” BetaShares said in a statement.

The Internet’s next frontier

The Metaverse is a secular growth trend that is predicted to revolutionise how people, companies and communities connect with each other, facilitate digitisation and virtualisation of communities, experiences, and commerce.

The Metaverse economy sits at the intersection of virtual and augmented reality, gaming, artificial intelligence, advertising, as well as digital currencies and tokens.

“To stay connected with their customers, brands will have to increasingly invest considerable resources towards their Metaverse strategy,” Betashares said.

“In practice, some leading brands are already taking advantage of the technology to engage deeper with their audiences.

“A recent example is the partnership between the International Space Station and Meta Quest to bring a spacewalk to viewers via the Metaverse, or leading musicians performing in the Metaverse for their fans.”

However, as is often the case with emerging sectors, BetaShares said it can be sometimes tricky to determine which companies will ultimately go on to have a clear future in the field.

“While the power of the Metaverse and its long-term potential is clear, the future market structure is far from certain,” the company said.

“That’s why it makes sense for some to invest in a portfolio of companies involved in the Metaverse.”

Virtual and augmented key role in megatrend

BetaShares said leading market analysts have predicted the growing commercial opportunity associated with the Metaverse will start with adoption of virtual and augmented reality via new hardware. However, the long-term potential is ultimately set to be driven by more ongoing revenue streams such as advertising as well as the facilitation of transactions in the Metaverse.

BetaShares CEO Alex Vynokur is banking on Metaverse being a powerful megatrend that will be around for the long haul.

“As the range of technologies underpinning the Metaverse evolves and user growth continues, this secular trend is expected to revolutionise the way we engage with sport, live music, and other ways of staying connected,” he said.

“While still in the early stages of evolution, the Metaverse has the potential to be one of the biggest secular growth trends of the coming decades.”

CRYP ETF soars after bumpy ride

Meanwhile, CRYP has seen a rebound in the past month and is up more than 50%. CRYP had lost around 80% of its value since its record-breaking launch last year.

CRYP invests in listed companies in the crypto economy, such as exchanges, Bitcoin miners and infrastructure companies.

While it had a record debut as the price of the major coins like Bitcoin and Ethereum fell the cryptocurrency sector along with CRYP felt the fallout. However, a bumpy July rally which is extending into the early days of August is boosting CRYP.