Metaverse ETF Roundhill slashes fee amid booming competition

Key Takeaways:

• Roudhill Ball Metaverse exchange traded fund (ETF) cut 20% off its fees to Roundhill Investments.
• In doing so, the Fund initiated a competition between other Metaverse ETFs: PUNK, MTVR, etc.
• METV’s initial success could have been a lucky coincidence.

YEREVAN (CoinChapter.com) – Roundhill Ball Metaverse ETF (METV), the biggest digital world exchange-traded fund, cut its fees from 0.75% to 0.59%. Moreover, Roundhill Investments, the company behind the ETF, announced that the shareholders wouldn’t be affected by the cost slash.

No action is required by current shareholders of the Roundhill Ball Metaverse ETF as a result of this change. The Fund will continue to offer investors exposure to the Metaverse by seeking to provide investment results that closely correspond, before fees and expenses, to the performance of the Ball Metaverse Index.

commented the company.

Also read: SEC gives a nay to Fidelity spot Bitcoin ETF amid ongoing BTC market decline

However, the fee reduction caused a competition wave among other Metaverse-backing ETFs, such as the Subversive Metaverse ETF (PUNK) and Fount Metaverse ETF (MTVR).

Embracing the Metaverse

The fee-slashing frenzy appeared as investment giants, such as Fidelity Investment and Global X Funds, have filed applications for Metaverse products in the past two weeks. However, neither filings have management fees listed yet.

Moreover, Matthew Ball, the CEO of Ball Metaverse Research Partners, compared the Metaverse rise to the Internet in the ’90s and ’00s.

In detail, the Metaverse, or digital virtual reality, took the market by storm after Facebook announced its rebranding to ‘Meta’ in Oct. 2021. That prompted many financial experts to predict more companies joining the metaverse bandwagon to compete with Meta.

For instance, Athanasios Psarofagis, an ETF analyst for Bloomberg Intelligence, commented on the rapid rise.

That was a pretty big jump, You’ve got PUNK now and Global X and Fidelity just filed too. So, it’s going to get competitive.

said the analyst.

ETF investment gives traders exposure to a particular asset market without the necessity to purchase, store and resell it.

As a result, the system allows a larger audience to dab their toes in cryptocurrency investment, lowering the risk factor. Thus, a Metaverse ETF would enable investors’ interest and boost the blockchain-based digital reality platforms.

Also read: First decentralized finance (DeFi) ETF set to launch in Brazil.

Additionally, the latest embrace of virtual reality brought on an abundance of such platforms and tokens designed to facilitate the Metaverse. Roundhill Investments spotted the potential early on, and METV soon brought rewards.

What’s behind METV success?

The $856 million Roundhill Ball Metaverse is the oldest and largest Metaverse-backing ETF. Launched in June 2021, the ETF’s asset inflow took off primarily due to Facebook’s rebranding. However, it might be possible that investors confused METV’s previous ticker META as Mark Zuckerburg’s Meta.

Despite the possibility of an initial mixup, the outflows didn’t increase after Roundhilll adopted the METV ticker. Thus, it is not clear whether Roundhill Ball ETF would have succeeded without the initial META ticker, and Mr. Psarofagis agreed.

They were definitely early and got the bump with the Meta change. I’m not sure they would have the same assets under management they do now without all that attention.

said the analyst.

Also read: KPMG Canada becomes the latest mainstream firm to add Bitcoin and Ether to its treasury.

With the latest fee slash, Roundhill Ball Metaverse ETF started competing with other existing and potential ETFs. The race could expand the Metaverse adoption and make the sector more available for the general public to invest safely.