Even as some institutional investors appear to have lost interest in the concept, investment firm BlackRock has launched an exchange-traded fund (ETF) that will focus on tech companies involved in the metaverse. The iShares Future Metaverse Tech and Communications ETF (IVRS) will invest in companies that are expected to contribute to the metaverse in areas such as virtual platforms, social media, gaming, 3D software, digital assets, and virtual and augmented reality. The fund's top holdings are Meta Platforms, Apple, Nvidia, Netease, and Roblox.
In recent years, interest in creating the metaverse has grown, with independent platforms such as Decentraland and The Sandbox gaining significant market share. According to a recent survey conducted by consulting firm KPMG, general attitudes toward building the metaverse remain mixed. While more than 90% of investors believe the metaverse is the next phase of the internet, many are wary due to regulatory, privacy, and adoption concerns.
Despite this, given the timing of the launch, BlackRock is positioning itself for the technology's longer-term potential. The ETF will invest primarily in equities and will not directly invest in cryptocurrencies, but rather in companies that facilitate the use of payment systems or digital assets in the metaverse.
The new ETF will most likely compete with Global X Metaverse ETF, Roundhill Ball Metaverse ETF, and Fidelity Metaverse ETF, all of which have seen their values fall in the last year. However, BlackRock's fund is focusing on the technology's potential, with Reid Menge, co-portfolio manager of the BlackRock Technology Opportunities Fund, stating that the metaverse has enormous potential "is comparable to the early 1990s internet or the early 2000s smartphone. We anticipate that it will be significant and will most likely change people's daily lives."
The IVRS ETF trades on the New York Stock Exchange and has a net asset value of about $5 million. BlackRock's entry into the metaverse reflects the growing interest in the technology and its potential to transform various industries
Final Words
Despite a recent decline in investor interest, BlackRock's new iShares Future Metaverse Tech and Communications ETF (IVRS) reflects the growing interest in the metaverse concept. The investment in companies that contribute to the metaverse by the fund could position it for long-term potential in the technology. While attitudes toward the metaverse remain mixed, with regulatory, privacy, and adoption concerns, the fund's portfolio is likely to benefit from independent platforms such as Decentraland and The Sandbox's growing market share. Investors interested in the metaverse and its potential may find it beneficial to stay up to date on the latest developments in the space. One method is to access to https://chainplay.gg/blog/, a platform that covers topics related to the metaverse and blockchain gaming.
