Metaverse ETF appetite strong as ProShares files with SEC

[NEW YORK] ProShares is planning to launch an exchange-traded fund (ETF) focused on the metaverse, according to a Tuesday (Dec 28) filing with the US Securities and Exchange Commission (SEC).

If approved, the ProShares Metaverse Theme ETF will track the performance of the Solactive Metaverse Theme Index.

The index consists of companies that provide or use technologies that offer products and services around the metaverse, like data processing and metaverse devices.

Apple, Meta Platforms, and Nvidia are the index's top weightings. ProShares is the latest firm seeking to capitalise on the emerging metaverse trend.

Global metaverse ETF assets have surged to US$2.2 billion as of Dec 28, with most ETFs only launched in the last quarter.

The Roundhill Ball Metaverse ETF (ticker META) has swelled to US$916 million assets under management since its Jun 30 launch.

In November, Canada saw 2 metaverse ETFs launched in 1 day. "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," said Todd Rosenbluth, director of mutual fund and ETF research at CFRA.

The Metaverse Theme ETF caps a monumental year for ProShares, in which it became the first firm to win approval from the US SEC to launch a Bitcoin futures ETF. The fund debuted as the second-most heavily traded ETF on record.

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