A crypto exchange Crypto.com confirmed that hackers stole nearly $34 million during Monday's hack. In a Tuesday update, the exchange revealed that hackers stole 443.93 bitcoin ($18.7 million), 4835.25 ether ($15.2 million) and approximately $66,200 in USD. The company faced criticism over its communication after the incident. The company's CEO only confirmed the hack on Wednesday, three days after it took place. In total, the hack affected 483 users. However, Crypto.com said that they fully reimbursed all of them. The…
ETF issuer ProShares released its first exchange-traded fund focused on the metaverse.
ProShares, the company behind the first U.S. Bitcoin ETF, now plans to release an ETF focused on tracking metaverse stocks. The issuer, which has over $65 billion under management, filed a request with the Securities and Exchange Commission.
The ProShares Metaverse Theme ETF will track the Solactive Metaverse Theme Index and a stock index focused on the metaverse.
The request will track companies providing or using metaverse tech, including data processing and hardware.
The index includes companies in the AR and VR industry, gaming and other tech-related to the metaverse. Of course, this includes Meta (formerly Facebook), which makes up almost 10% of the index. It also provides gaming giants such as Unity Software and Roblox and other tech giants, such as Apple, Alphabet and Snap. Chipmakers such as Nvidia and Himax tech also have an extensive index share. However, it also includes smaller companies that work on specific tech that could become an integral part of the space.
The ETF is now awaiting approval by the SEC.
The ProShares ETF filing comes as companies increasingly invest in the metaverse and NFTs. As a result, the Metaverse ETFs space is overgrowing. Currently, the funds attract some $2.2 billion in the capital—Moreover, most of the funds launched in the last quarter of 2021.
ProShares is one of the most performant EFT issuers in the digital asset industry. Earlier this year, the company won approval for the first U.S. first bitcoin ETF. The ProShares Bitcoin Strategy (BITO) ETF invests in bitcoin futures contracts rather than bitcoin directly. Therefore, it allows conventional investors to get crypto exposure. The EFT reached $1 billion under management in two days since the launch. Since then, more crypto ETFs have followed, going a combined value of more than $60 billion.
The metaverse is a virtual space that allows users to interact with each other and the environment. The idea gained broad publicity once Facebook changed its name to Meta – to show where its focus stands. Meta also owns Oculus, and a company focused on building VR goggles – an essential piece of hardware for the metaverse.
The metaverse industry has a wide variety of potential uses. However, its primary use will likely be in gaming and social media. Both of these industries will likely rely on blockchain tech, especially NFTs. Already, NFTs are serving as proof of ownership of digital assets in the metaverse, especially in games. For example, many games issue digital real estate in the form of NFTs.
Experts estimate the global metaverse market was worth about $48 billion in 2020. They also expect it to rise to $872 billion in 2028, equivalent to an annual growth rate of 44%. The rapid growth is not surprising, as Meta alone pledged to spend $10 billion developing it.
However, metaverse stocks could suffer like all tech stocks if major central banks raise interest rates. Tech stocks rely heavily on fast growth, making them sensitive to interest rates. Many believe that the space will grow enough to justify the boom despite those risks. This has led to a true metaverse frenzy, where any company even remotely tied to it got a boost.
A similar boom in metaverse stocks is happening in China. There, investors are buying up all things metaverse, despite official warnings. However, due to its policies on foreign tech companies, China will likely have to develop its metaverse ecosystem.