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BetaShares launches Metaverse ETF

BetaShares has today launched a Metaverse ETF on the ASX, adding to its thematic fund offering.

A company issued statement called the BetaShares Metaverse ETF (MTAV) an Australian first.

It aims to track the Bloomberg Metaverse Select Index and currently offers exposure to a portfolio of 32 companies that generate a portion of their revenues from activities related to the Metaverse, including Roblox, NVIDIA and Meta Platforms.

"MTAV is the first exchange traded fund of its kind in Australia and provides investors a convenient and cost-effective way to access a portfolio of global names that are driving this growing sector," it said.

The ETF also 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.

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

The statement added in order to stay connected with customers, brands will have to increasingly invest considerable resources in their Metaverse strategy.

"As a result, the potential opportunity associated with the Metaverse is considerable. Bloomberg Intelligence has estimated the market opportunity associated with the Metaverse at nearly $800 billion in annual revenue by 2024," the ETF manager said.

"In practice, some leading brands are already taking advantage of the technology to engage deeper with their audiences - a recent example being 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."

BetaShares chief executive Alex Vynokur called it a powerful megatrend that is predicted to shake up how we connect with family, friends and the wider community.

"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 explained.

"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. We are proud to provide investors with access to this investment opportunity. This innovative new fund will form part of our leading suite of thematic funds that offer investors exposure to the megatrends that are changing the world around us."

BetaShares said market analysts have predicted the growing commercial opportunity associated with the Metaverse will start with the adoption of virtual and augmented reality via new hardware.

"The long-term potential will ultimately be driven by more ongoing revenue streams such as advertising as well as the facilitation of transactions in the Metaverse," it said.

Read more: BetaShares Metaverse ETFAlex Vynokur