The largest international investment firm, Blackrock, has been focusing on web3 and the digital asset sector. The company's most recent step was the recent debut of an exchange-traded fund with a metaverse theme intended to assist investors profit from the metaverse's potential.
Recently, the new iShares Future Metaverse Tech and Communications ETF (IVRS US), which has an expense ratio of 0.47%, was launched on NYSE Arca. According to reports, the fund was established on February 14.
This recently created equity fund with a metaverse concentration seeks out businesses focused on advancing the metaverse ecosystem. The Morningstar Global Metaverse & Virtual Interaction Select Index is connected to this fund.
As of February 17 with a daily volume of 410, statistics at the time of writing this report showed that the fund had only amassed a net asset of roughly $5.02 million.
Also, according to data from February 17, around 72.4% of the Index's entire composition consisted of US-listed equities. Apart from Japan (8.2%), China (10.2%), South Korea (3.6%), France (5.1%) are other nations with significant holdings in the fund. Additionally, data show that firms like Meta Platforms, Apple, Nvidia, Roblox, and a number of others receive the majority of investment in the IT sector.
Blackrock allegedly plans to launch an ETF that will focus on the metaverse in October. This is only one of many US-based metaverse-themed ETFs that have previously been introduced. The biggest of the bunch is now Roundhill Ball Metaverse ETF.
Companies looking to join the fund reportedly need to have a market valuation of $300 million and $2 million in trading volume. Companies featured in the new Blackrock fund will be given at least one of six relevance ratings connected to the metaverse sub-theme.
As of February 17 with a daily volume of 410, statistics at the time of writing this report showed that the fund had only amassed a net asset of roughly $5.02 million.
Wearable technology and virtual reality/augmented reality, enhanced social media, 3D rendering and simulation software, metaverse platforms, immersive gaming, and digital assets & payments are the six categories that make up the metaverse sub-theme scores.
The ratings evaluate the firm's likelihood of profiting from each sub-theme. This evaluation considers the company's income from the sub-theme during the next five years. The Index will also rank tier one or tier two enterprises according to the revenue exposure level to subthemes. According to the article, this index fund would be rebalanced every December, at the end of the year.
