ProShares seeks approval from SEC to launch a Metaverse ETF

ProShares, the first US-based company to launch a Bitcoin ETF, is now exploring the realm of Metaverse by planning to launch an exclusive Metaverse ETF. 

ProShares on Tuesday filed with the US Securities and Exchange Commission (SEC) to seek approval to launch a ProShares Metaverse Theme ETF, an ETF that will track the Solactive Metaverse Theme Index which includes firms that are associated with the metaverse technology.  

ProShares Metaverse ETF

The filing further comprised details related to the Solactive Metaverse Theme Index(SOMETAV) that ProShares intends to track once it receives approval from the SEC. The SOMETAV index consists of firms and companies that are using or deploying Metaverse technology in the form of data processing or metaverse devices. 

The index comprises US companies that are listed on New York Stock Exchange or Nasdaq that meet specific market capitalization and liquidity requirements, ProShares further added. The index also includes prominent firms such as Apple, Meta, Microsoft, Intel, and Nvidia

Once approved, it will allow ProShares to gauge and track the performance of the Solactive Metaverse Theme Index which consists of companies actively involved in the adoption and usage of metaverse related technology. 

The soaring popularity of the Metaverse

ProShares’ decision to launch a Metaverse ETF comes amidst the rising popularity of the concept that has attracted a tremendous influx of funds these past few months. Recently two Canadian companies, Evolve Funds and Horizons ETF management have started trading their Metaverse ETFs on Toronto Stock Exchange, proving that the concept has been gaining steady momentum. 

The concept of Metaverse, in general, involves a world of virtual interactions. It can be best described as an ecosystem that hosts diverse digital functionalities such as immersive gaming experiences, trading NFTs and digital collectibles as well as allowing users to conduct or attend special events and activities in their digital avatars facilitated via virtual and augmented reality devices. 

According to a report by crypto giant Grayscale, the metaverse is a potential $1 trillion market and is referred to as a “huge opportunity” for crypto companies that are looking forward to solidifying their niche in this particular sector.