ProShares Seeks To Launch Metaverse-Themed ETF — Apple, Meta And This Chipmaker Would Be Its Largest Holdings

ProShares is looking to launch the ProShares Metaverse Theme exchange-traded fund to capitalize on the trend surrounding virtual places.

What Happened: The ProShares Metaverse Theme ETF would track the Solactive Metaverse Theme Index, according to a prospectus filed with the U.S. Securities and Exchange Commission, first noted on Bloomberg. 

One of the largest holdings of the index is the chipmaker Nvidia Corporation NVDA. 

The index’s other holdings span Apple Inc AAPL and Facebook parent Meta Platforms Inc FB  — companies that offer products and services associated with the Metaverse.

The prospectus stated risks associated with developing technology and noted that companies included in the index have “significant business lines that are not metaverse-related.”

“These unrelated business lines may have a significant impact on the performance of the company, Index and the Fund,” as per the filing.
See Also: How To Buy NVIDIA (NVDA) Stock

Why It Matters: ProShares noted in its prospectus that the Metaverse is “enabled” by several connected technologies such as virtual and augmented reality, digital environments, and artificial intelligence.

This summer, Roundhill Investments launched the Roundhill Ball Metaverse ETF META. That fund provides investors exposure to 50 companies “collectively positioned to drive the future of the internet,” according to Roundhill CEO Will Hershey. 

In October, Facebook announced that it will rebrand as Meta. The company said at the time that the “metaverse is the next evolution of social connection.”

The sale of digital properties in the Metaverse has picked up pace this year with the growing popularity of virtual environments, particularly after the Facebook rebrand.

“I don’t know if the metaverse theme has legs, but investors believe in it,” said Todd Rosenbluth, director of mutual fund and ETF research at CFRA, reported Bloomberg.

“Given the success of the ETF META, we are likely to see more products come to market that offer a unique twist on this long-term theme.”

Price Action: On Wednesday, Nvidia shares closed nearly 1.1% lower at $300.01 in the regular session and fell 0.8% in the after-hours trading.
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