Metaverse storms ETF charts to become industry’s hottest concept

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The avalanche of launches has come despite an embarrassing lack of traction for many early offerings in the metaverse

Even Meta Platforms Inc., which was so enamoured by the concept that it changed its name from Facebook to “reflect its focus on building the metaverse,” has started to lay off workers associated with the project.

In Roundhill Ball Metaverse ETF’s wake, a further 11 metaverse ETFs launched globally in the fourth quarter of 2021 alone, according to Morningstar’s database; 23 more have seen the light of day this year. Net flows to metaverse ETFs totalled US$2.6-billion between October 2021 and February of this year, according to Morningstar. However, since then, they have turned negative, with US$111-million being withdrawn.

One obvious question, though, is what exactly the metaverse will be used for. Much of the initial coverage has focused on consumer uses, such as gaming and socializing. Mr. Ball points to early uses such as Johns Hopkins University neurosurgeons using augmented reality to perform spinal surgery, the U.S. army buying Microsoft Corp.’s AR headsets and Tesla Inc. creating a simulation of San Francisco to test its self-driving systems.

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