Duel metaverse ETFs about to be launched in Canada, with different approaches to futuristic space


CEOs say their ETFs would likely attract individual retail investors who gravitate towards thematic ETFs

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Metaverse ETFs will hit Canadian markets for the first time on Monday as Toronto-based Horzions ETFs and Evolve ETFs launch fund-tracking companies involved in the space.

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The Horizons Global Metaverse Index ETF (MTAV) will target a number of overlapping segments with the metaverse, including: augmented and virtual reality; the creator economy, in which companies provide platforms for individuals to create and share content; digital infrastructures; games ; and digital payments.

Some of the companies you can expect to find in the index include Meta (formerly Facebook), Snap, Adobe, and digital infrastructure leaders like Microsoft and Oracle.

Steve Hawkins, President and CEO, said that while companies like Meta have brought the metaverse into the air, the portfolio will create a larger network of businesses with the metaverse space.

“All of these businesses, from our perspective, are impacted by the Metaverse in a positive way and will benefit or benefit from the expansion of the Metaverse as it evolves,” Hawkins told the Financial Post.

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Hawkins added that the companies in the portfolio have been identified by artificial intelligence (AI) as having mentioned the metaverse as part of their business strategy.

Steve Hawkins, President and CEO of Horizons ETFs Toronto.
Steve Hawkins, President and CEO of Horizons ETFs Toronto. Photo of Horizons ETFs Management (Canada) Inc.

Evolve takes a different approach with its Evolve Metaverse ETF (MESH). Raj Lala, president and CEO of Evolve, described an actively managed strategy in which the company selects a few key areas and finds businesses there, researching names like Meta, Microsoft and virtual reality real estate modeler Matterport.

“We decided that we were going to take an active approach and identify the right types of companies that were going to be involved in specific areas of the metaverse, whether they were hardware manufacturers (VR and AR) … whatever they do. part of the software developments, the platforms, things like that, ”Lala said.

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The Metaverse is a virtual space where users can connect, interact with each other, and discover events such as art galleries and NFT concerts.

Lala sees the metaverse as a space that will expand beyond gaming, which many people associate with technology today. He described other potential uses, such as an educational tool or a fitness rack (where a user can train against a virtual partner while wearing a helmet).

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Other industry leaders share his optimism: US digital investment giant Grayscale said the metaverse could represent an annual market opportunity of more than US $ 1 trillion in a report released Thursday. The company sees revenue from the games portion of the Metaverse market increase to $ 400 billion in 2025, from $ 180 billion in 2020.

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Hawkins and Lala both said their ETFs would likely attract individual retail investors who gravitate towards thematic ETFs.

While some investors admit struggling to grasp the concept of the metaverse and skeptics remain, Lala said companies that missed the internet boom will no longer make that mistake.

“(What is) really important to note is that this is really the first few days to understand what the metaverse is, and you can tell it’s the beginning because so many people have different definitions of what the metaverse is and what it represents. Lala said, adding that many are stuck seeing it in a one-dimensional way.

“We have to make sure that we have always remained relevant in this world, and the only way to stay relevant is to take a closer look at the metaverse space technologies and embed them into our business,” he said.

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