Hong Kong gears up for its first metaverse ETF

Hong Kong’s first metaverse-themed exchange-traded fund (ETF), the CSOP Metaverse Concept ETF, is scheduled to be listed on Feb. 21 on the Stock Exchange of Hong Kong, according to a CSOP Asset Management disclosure document.

See related article: NFTs, metaverse listed as top ‘must watch’ security risks in Hong Kong

Fast facts

• The metaverse ETF will invest at least 70% of its net asset value in securities companies that are listed on the New York Stock Exchange or the Nasdaq, or traded on U.S. over-the-counter markets, and are directly or indirectly involved with the metaverse business.
  

• The ETF portfolio’s top 10 holdings are global technology companies and chip makers Meta, Roblox, Nvidia, Unity, Apple, Snap, AMD, Qualcomm, Sony and Tencent, Shanghai-based state-media subsidiary Yicai reported.

• The fund focuses on four key areas — metaverse infrastructure, construction technology, applications and content.

• During the initial offer period, the ETF issue price will be set at approximately US$1 (HK$7.8).

• Metaverse ETFs have been popping up since last year, with South Korea launching Asia’s first four metaverse ETFs, which raised $100 million in just two weeks after their launch.

• Morgan Stanley predicts the value of the metaverse could reach a market value of US$8 trillion in China alone.

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