New Metaverse ETF Hits US Market

Subversive Capital’s PUNK shorts Meta, formerly known as Facebook


Blockworks exclusive art by axel Rangel


key takeaways

  • Firm wants metaverse industry to develop without getting “Zucked-up,” Subversive Capital portfolio manager says
  • Meta Platforms is the top holding in Roundhill Investments’ metaverse ETF, which has $822 million assets under management

Subversive Capital has launched a metaverse ETF that is bearish on the largest company in the space.

The actively managed Subversive Metaverse ETF (PUNK), set to begin trading on the Cboe BZX Exchange Thursday, invests in companies worldwide that support the infrastructure and applications of the metaverse. In a twist, the ETF intends to short Meta Platforms, the company formerly known as Facebook. 

PUNK’s largest competitor, the Roundhill Ball Metaverse ETF (META), takes the opposite view. Its top holding is Meta, maintaining an allocation of 8.7%. Launched in June, the fund has $822 million of assets under management. 

Subversive Capital Portfolio Manager Christian Cooper said in a statement that the metaverse is becoming disproportionately associated with “overpowering” companies, such as Meta Platforms. 

“Our mission here at Subversive is to question the integrity of the status quo … and build a foundation for people to appreciate these emerging sectors just as much as we do,” Cooper said. “We want to make sure this industry develops, without getting ‘Zucked-up’, from those who see the true potential of this space.”

Subversive Capital did not immediately return Blockworks’ request comment.

Meta Platforms has discussed launching an NFT platform, The Financial Times reported last week. Microsoft recently announced it would acquire gaming publisher Activision Blizzard in part to “provide building blocks for the metaverse.”

While PUNK and META have a different approach to investing in Meta Platforms, each have Microsoft, Nvidia and online game platform Roblox as top-five holdings.

Another metaverse ETF trading in the US is the Fount Metaverse ETF (MTVR), which has about $12 million in assets. Launched in October, the fund’s top holding is Apple, followed by Meta Platforms. 

The new Subversive Capital ETF carries an expense ratio of 75 basis points, which is the same as META. MTVR cost 70bps. 

More metaverse ETFs are expected to come to the US market in the coming months.

Fund managers First Trust and ProShares revealed plans in December to offer metaverse ETFs. Simplify ETFs filed earlier this month to launch a fund that would invest primarily in what it considers to be Web3 and metaverse companies in the US and abroad. 

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