Ben Strack

<div id="highlights-block_61fd9e58430af" class="highlights">
 <ul>
 <li>The proposed fund would primarily invest in securities within a Global X-developed index</li>
 <li>Planned ETF joins similar products recently filed by First Trust, ProShares and Fidelity Investments</li>
 </ul>
 
</div>



Exchange traded fund-specialist Global X filed to launch a metaverse fund Friday, becoming the latest fund issuer dabbling in the digital space.



The New York-based firm’s Metaverse ETF will primarily invest in the securities of its own metaverse index, which consists of companies positioned to benefit from the development and commercialization of the metaverse, according to the <a href="https://www.sec.gov/Archives/edgar/data/1432353/000143235322000028/a485a-metaverse.htm" target="_blank" rel="noreferrer noopener">regulatory filing</a>.



Global X defines the metaverse as “a set of virtual, three dimensional, real-time rendered spaces and simulations that can be experienced simultaneously by users regardless of the users’ physical location.”



The document did not indicate a ticker or expense ratio.



A Global X spokesperson did not immediately return a request for comment.



Global X has about 90 ETFs trading in the US, with combined assets of roughly $40 billion. It launched its <a href="https://www.globalxetfs.com/funds/bkch/" target="_blank" rel="noreferrer noopener">Blockchain ETF (BKCH)</a> in July, which has grown to about $85 million in assets.



The firm also <a href="https://cms.blockworks.co/global-x-offers-different-type-of-bitcoin-futures-etf/" target="_blank" rel="noreferrer noopener">brought to market</a> its Blockchain &amp; Bitcoin Strategy (BITS) in November. Unlike other bitcoin futures-based products launched in October by ProShares and Valkyrie Investments, BITS invests in both bitcoin futures contracts and stocks of blockchain companies.



Global X’s proposed fund joins others recently filed by <a href="https://www.sec.gov/Archives/edgar/data/0001364608/000144554621006106/etf2_485a.htm">First Trust</a>, <a href="https://cms.blockworks.co/proshares-files-for-metaverse-etf/">ProShares</a> and <a href="https://cms.blockworks.co/fidelity-plots-crypto-etfs/">Fidelity Investments</a>.



Metaverse ETFs available in the US include Roundhill Investments’ Roundhill Ball Metaverse ETF (META), which leads the segment with $820 million in assets, and Subversive Capital’s Metaverse ETF (PUNK), <a href="https://cms.blockworks.co/new-metaverse-etf-launches/">which launched last week</a>.



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Global X Latest ETF Issuer to Test Out the Metaverse

<div id="highlights-block_61df3a38f7de4" class="highlights">
 <ul>
 <li>Proposed fund to invest in companies focused on the shift from a centralized self-hosted hardware infrastructure to a decentralized cloud infrastructure </li>
 <li>Like the firm’s US Equity PLUS GBTC ETF (SPBC), the newly proposed fund may invest up to 10% of its assets in the Grayscale Bitcoin Trust (GBTC)</li>
 </ul>
 
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Simplify ETFs is looking to launch a fund that would invest primarily in what it considers to be Web3 and metaverse companies in the US and abroad.&nbsp;



The New York-based investment firm has 16 ETFs trading in the US with combined assets of roughly $1 billion, according to ETF.com.



Simplify launched its US Equity PLUS GBTC ETF (SPBC) in May 2021. The fund, which has $114 million in assets, primarily invests in US equities while also offering investors a 10% exposure to bitcoin through the Grayscale Bitcoin Trust (GBTC).



The firm now looks to go deeper into the crypto space by launching the Simplify Volt Web3 ETF (WIII), according to <a href="https://www.sec.gov/Archives/edgar/data/1810747/000182912622000793/simplifyexchange_485apos.htm" target="_blank" rel="noreferrer noopener">a disclosure filed on Wednesday</a>. The proposed fund, which would be sub-advised by Volt Equity, is set to charge a management fee of 95 basis points, the document notes.



“Web3 companies are companies that the sub-adviser believes are focused on and expected to benefit from shifting the bases of technology infrastructure from a centralized self-hosted hardware infrastructure to a decentralized cloud infrastructure,” the filing states. “The companies will use, help others use, or significantly be reliant upon Web3 technology, which is generally verifiable, trustless, self governing and distributed and may include metaverse companies.”



The document labels metaverse companies as those helping bring a computerized virtual environment to the masses. The metaverse could play a large part in internet innovation, the filing states, as it may allow users to own pieces of digital property through NFTs or other digital tokens.



Though the planned product would not invest in cryptocurrencies directly or through the use of derivatives, the fund may invest up to 10% of its assets in the Grayscale Bitcoin Trust (GBTC).



There is no ETF in the US with Web3 in its name, but there are several focused on the metaverse. 



Roundhill Investments’ Roundhill Ball Metaverse ETF (META), which launched in June, has about $915 million in assets, ETF.com data shows. Exchange Traded Concepts launched the Fount Metaverse ETF (MTVR) in October, and that fund has about $13 million.



Fund managers <a href="https://www.sec.gov/Archives/edgar/data/0001364608/000144554621006106/etf2_485a.htm" target="_blank" rel="noreferrer noopener">First Trust</a> and <a href="https://cms.blockworks.co/proshares-files-for-metaverse-etf/" target="_blank" rel="noreferrer noopener">ProShares</a> filed for metaverse ETFs last month.&nbsp;



Lara Crigger, managing editor of ETF Trends, <a href="https://cms.blockworks.co/what-crypto-related-etfs-could-hit-the-us-market-in-2022/" target="_blank" rel="noreferrer noopener">said during a podcast earlier this month</a> that she believes the metaverse is “a little thin on the ground when it comes to investability.”&nbsp;



An executive at Simplify declined to comment beyond the filing.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.