Recent metaverse market size projections suggest that the industry will be worth over $820 billion by 2030. The figures also depict a 39% compound annual growth rate from 2022, as more people invest in the metaverse to get a piece of the technology taking the world by storm.
The metaverse integrates the physical world into a digital space using the internet, virtual reality, augmented reality, and mixed reality technologies. It is gradually becoming mainstream, with hundreds of projects, companies, and individuals seeking to invest in the concept.
Whatever stage you might be in as an investor, here are five ways you can get investment exposure to the metaverse.
While there are many options for investing in the metaverse, metaverse stocks provide one of the easiest and beginner-friendly options. Investors don’t need cryptocurrencies to get started. Further, the metaverse ecosystem has many companies that appeal to any investor who prefers to stick to the equity market. Metaverse stocks provide direct exposure to a particular project and indirect exposure to the ecosystem’s growth.
For instance, Meta, which recently changed its name from Facebook, is deeply involved in the metaverse ecosystem and its expansion. The company intends to spend $10 billion in 2022 on metaverse developments and has already launched metaverse projects, such as Horizon Worlds. Horizon Worlds is a virtual reality platform that allows users to interact via legless avatars. Users can play games or simply explore the stretch of the virtual world.
Nvidia, the American multinational tech company, is another option for metaverse stocks. The company’s chips are already in use in different metaverse projects, setting it up for potential growth of share value as the metaverse expands.
An ETF is a collection of different assets or securities sold together in a single basket that is tradable on a stock exchange, just like company stock.
Metaverse ETFs are designed to provide investors with exposure to the metaverse ecosystem. These funds focus on globally listed financial products or securities that support the metaverse infrastructure and its applications.
The first Metaverse ETF was the Roundhill Ball Metaverse ETF (METV) which launched on June 30, 2021, with $863 million in assets under management. The ETF holds companies developing the metaverse infrastructure, gaming engines for virtual worlds, and pioneers in commerce, content, and social platforms on the metaverse.
Other ETFs which you can invest in the metaverse include Fount Metaverse ETF (MTVR), Evolve Metaverse ETF (MESH), Subversive Metaverse ETF (PUNK), The Simplify Volt Web3 ETF (WIII), and Horizons Global Metaverse Index ETF (MTAV).
The metaverse potentially presents a virtual world with the possibility of e-commerce and ownership of metaverse property. Users can buy virtual spaces on the metaverse land, such as Decentraland, and other asset classes like NFTs.
Therefore, most metaverse projects have digital currencies, with the current most popular ones being MANA for Decentraland and SAND for the Sandbox.
Investors can choose to buy and hold metaverse cryptocurrencies as an investment. Moreover, tokenholders can also stake and earn yields on their stakings or have voting rights for cryptocurrencies under DAOs.
Virtual Land NFTs
Investors can also purchase virtual land, in the form of NFTs, to add metaverse exposure to their crypto portfolios.
Virtual land works in the same way as physical land, except it only exists in the virtual realm. Currently, investors can purchase virtual land and property in Decentraland and Sandbox, as well as a handful of other blockchain-powered metaverses.
Metaverse Index Tokens
Creating a metaverse portfolio requires investing in different metaverse projects’ crypto tokens. Fortunately, there are metaverse index tokens that make adding metaverse exposure to your crypto portfolio easier.
Metaverse indices provide investors with price exposure to numerous metaverse projects. It is a great way to invest in the metaverse if you want to invest in the larger metaverse ecosystem rather than focusing on a single project. Investors get to offset volatility for multiple tokens and capture an expanding market without the need for researching and rebalancing their investment portfolios.
Investors can look for popular indices, including the Metaverse Index ($MVI).
There is a long list of opportunities to invest in the metaverse. However, investing in metaverse tokens is arguably riskier than your bitcoin bet.
It’s important to keep in mind that, as with any other investment, the different metaverse investment options all come with a share of risks, pros, and cons.
Your ideal option narrows down to individual factors, such as your risk tolerance level, investment goals, and available capital. But remember, never invest more than you can afford to lose - even in the metaverse.
This guest contribution was provided by Roselyne Wanjiru, one of Kenya’s leading blockchain consultants, a crypto economist, and a senior writer at Rise Up Media.