Profunds Group’s ProShares has revealed its plan to join the increasingly hot crypto Metaverse race in an announcement through its spokesperson. ProShares announced that it had applied with the United States financial watchdog, the SEC, to enable the company to issue crypto Metaverse leveraged ETFs at home and abroad successfully.
The US-based company prides itself as an entity that issues exchange-traded funds (ETFs), inverse exchange funds, and related products and services.
It is arguably one of the largest issuers of ETFs globally, with a catalog that can boast of the issuance and management of over $60 billion in digital assets.
The latest developments in the crypto Metaverse sector will feature ProShares ETF services should the SEC play ball.
The expertise that sees the investing firm lead the funds management race through the utility of unique strategies. The firm will now leverage the strategies in the crypto Metaverse sector.
What Is An ETF?
ETF stands for exchange-traded funds; it represents an extensive collection of related securities that can be bought, sold, or traded through a broker on any stock exchange. It tracks an index of commodities that have been collated and inherently established.
It offers more stability and leeway than other investment options like mutual funds and the mainstream individual stocks acquisition.
Novice investors prefer them due to the training wheels it affords the class of investors. They can effectively avoid pitfalls, take fewer risks and invest less money when they utilize ETFs to navigate the stock exchange market.
ETFs, afford low expense ratios, robust liquidity span on chosen investments, a high level of diversification leveraged on tracked indexes, and others.
The concept that has developed and matured globally in traditional centralized financial markets has now been mirrored in the crypto DeFi scheme.
The cryptocurrency DeFi market structure also features the usage of ETFs to navigate and trade the market space. Although not as popular as other forms of investments and trading like marginal trading and futures contract staking, it still affords the same advantages in centralized finance systems.
Crypto’s Metaverse Sector
Since its global boom post-Covid-19, Cryptocurrency has seen its accompanying innovations develop at a record pace.
Branched sectors and applications like the non-fungible tokens (NFTs) and the Metaverse are stellar representations of such growth.
According to Grayscale Analytics, the NFT Crypto sub-industry is currently valued at approximately $480 billion.
Metaverse in the crypto world is a virtual universe that facilitates interaction virtually between various users globally. It is a hub that features unique and numerous digital services. The services include virtual gaming experience, NFT buying, selling, HODLing, digital collectibles acquisition, development and exhibition of proprietary NFTs, usage of virtual digital avatars to navigate the crypto ecosystem, and so on.
Grayscale earlier this year, in a monthly report, revealed that the Metaverse sector has a potential market value of $1 trillion. This has resulted in a craze amongst investors and corporations alike, with massive capital being funneled into the Sector at record speed.
ProShares Metaverse Inclusion
ProShares has announced its intentions to provide Crypto ETFs to track the Solactive Metaverse Theme Index, an index mainly comprising Metaverse tech invested firms and corporations.
In its announcement earlier this week, the firm revealed that it had successfully applied for permission from the SEC to launch the new service feature in the United States.
Once reviewed and approved, the application will allow ProShares to analyze and track the Solactive Metaverse Theme Index.
The firm’s expansion into the Metaverse sector can reflect the Crypto industry’s growth over the last half-decade and its increasing relevance globally.