Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The Metaverse:
How to Invest in the Future

The metaverse is one of the most talked about trends of 2022, but do many traders actually understand the concept before buying into related stocks, ETFs and NFTs? Come and explore the virtual world with us.

What is the metaverse?

In simple terms, the metaverse is the idea of a digitally simulated environment that reflects the physical world. Its purpose is to create interactive and immersive experiences between users around the world through multiple avenues such as gaming, social media, art and finance.

Augmented Reality (AR)

Augmented reality relates to sounds, visuals and other sensory elements that create a real-world environment.

Virtual Reality (VR)

Virtual reality requires special headgear to create three-dimensional images or environments that users can interact with.

Statistics

Although it has been reported that only 1 in 3 US adults are familiar with the concept of the metaverse, it seems like it has exploded in the past couple of years, generating an influx of money from tech giants, investors and hedge funds alike.

Here are some statistics to show you just how big its potential is:

Metaverse

Market Size

The metaverse is expected to be worth more than $800bn by 2028, with some outlets like JP Morgan and Goldman Sachs predicting its market size to be over $1tn.

Metaverse

Covid-19

The Covid-19 pandemic helped to grow consumer and business interest in the metaverse, where non-fungible tokens (NFTs) saw an increase of $2.5bn, according to EarthWeb.

Metaverse

Augmented Reality

AR is expected to overtake VR in the long run, with a combined CAGR growth of 63.3% by 2025, based on a report by Valuates.

Metaverse

Web 3.0

According to Statista, there are around 50,000 users currently for Web 3.0 virtual worlds, which is a new iteration of the worldwide web based on blockchain technology.

How to access the Metaverse

1

Virtual Reality

Access a VR headset to get involved with multi-player games

2

Avatars

Create your own Avatar as a digital twin

3

Real Estate

Invest in land by buying a virtual plot or estate around the world

4

Crypto

Purchase and spend crypto coins, including some of the most popular like MANA (Decentraland) and APE (ApeCoin)

Metaverse stocks to watch

Many traders now see the metaverse as an effective way to profit from the rise of artificial intelligence and the future of the internet. In particular, traders can open short long or short positions based on whether they think that the price of related instruments will rise or fall, through methods such as spread betting or CFD trading. So what are some metaverse stocks at the forefront of metaverse technology right now?

Metaverse

Meta Platforms [FB]

Formerly known as Facebook Inc, social media giant Meta was established in November 2021 to include new dimensions of virtual reality into its existing business model. CEO Mark Zuckerberg has even described the metaverse as “the next chapter of the internet”.

• Subsidiary Oculus operates a virtual meeting platform called Horizon Workrooms where teams can connect, collaborate and create.

• Meta Quest VR headsets create immersive experiences for users – such as concerts, social events and multi-player video gaming.

• The company partnered with Ray Ban for a pair of smart glasses that provide augmented and recordable reality.

Metaverse

Roblox [FB]

The video game developer and publisher hosts one of the top online entertainment platforms for under 18-year-olds, based on average monthly visits. According to GameSpot, the platform has over 200 million monthly active users as of 2021 and the company is aiming to target an older audience.

• The company partnered with apparel manufacturer Vans so that users could dress up virtual Avatars within their video games.

• It partnered with the US National Football League (NFL) to create an interactive gameplay and virtual hangout destination tied to league events, including the Super Bowl.

• Roblox plans to host targeted events for older users such as immersive virtual concerts featuring David Guetta and Twenty One Pilots.

Metaverse

Nvidia [NVDA]

While Nvidia is typically known for being a leader in graphics processing units (GPUs) within the semiconductor industry, the chipmaker has also ventured into deep learning and artificial intelligence and is well-known for its presence in the gaming market.

• Its own platform, the Omniverse, connects 3D worlds into a shared virtual universe by simulating real-world objects known as ‘digital twins’.

• The company’s CloudXR solutions allow streaming of virtual, augmented and mixed reality content from OpenVR applications to a remote server, including Windows and Android devices.

• Nvidia’s Iray technology mimics light and materials to generate photorealistic imagery from the VR headset, allowing users to examine scenes from a range of viewpoints in immersive 3D.

Interested to know more?

Read our Opto eBook: a list of the top 10 metaverse stocks to watch

report

What are some of the biggest markets right now?

Decentraland

One of the first platforms to tackle the concept of the metaverse was Decentraland, which was launched in 2020. It has over 300,000 monthly active users and 18,000 daily users, according to Yahoo Finance. The platform is a VR space based on blockchain that allows users to interact with one another, play games, attend events and trade investments and other digital assets, such as land, for money.

Sandbox

Sandbox is another blockchain-based platform that was originally released in 2012, although the official metaverse version of the game, Sandbox Alpha, launched at the end of 2021. The main focus of the game is to buy, sell and trade virtual plots of land, and it has also created its own digital currency, an Ethereum-based token called SAND, which can be used within the platform.

Roblox

Since the company launched in 2004, Roblox has published over 20 million games. The purpose of the platform is for users to create and develop their own games, which other users can then join. Roblox has also partnered with brands like Vans and Burberry so that users can dress up their Avatars in designer wear.

Hyperverse

HyperVerse consists of millions of worlds, planets and cosmos which make up the universe, and each person who lives there is referred to as a ‘Voyager’. Together, users can explore the universe, connect with friends, create tokenized items, watch streaming concerts, sell NFTs to other users and start businesses. The company was founded in 2016.

NAKAverse

The NAKAverse is a universe that will be introducing an in-game economy using the original NAKA tokens, a form of digital currency, which will be used to acquire virtual land and construct buildings. The platform is built and owned by Nakamoto Games, whose main focus is to net monetary rewards for both investors and players.

Stageverse

Exactly as you’d expect from the name, Stageverse is a VR platform hosting interactive experiences and events, such as concerts. Users can dress their Avatars, connect with fans around the world and explore the shows from 360-degree angles and 3D footage. As well as through a virtual reality headset, users can also watch the shows on mobile devices.

Metaverse ETFs:
the new trend?

A collection of stocks in simple terms, exchange-traded funds (ETFs) give traders access to multiple companies using a single position and are often themed to a specific trend or industry. Examples can include ESG, cannabis, SaaS and more, but is it time for them to move over for metaverse ETFs?

Roundhill Ball Metaverse [METV]

This was the first global index designed to track the performance of the metaverse through companies involved in payments, hardware, computing, networking and virtual platforms.

Top holdings:

• Meta Platforms
• Autodesk
• Sea
• Taiwan Semiconductor Manufacturing Company (TSMC)
• Qualcomm

ProShares Metaverse ETF [VERS]

The fund provides access to the metaverse ecosystem to capture opportunity as it evolves, tracking companies that have potential to revolutionise the digital world.

Top holdings:

• PTC
• Microsoft
• CEVA
• Activision Blizzard
• Snap

Evolve Metaverse ETF [MESH]

The fund aims to provide long-term capital appreciation through investing in North American securities, as well as other developed markets around the world, such as China and Japan.

Top holdings:

• Electronic Arts (EA)
• Tencent
• Advanced Micro Devices (AMD)
• Alibaba
• Coinbase

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Beginner in the stock market?

Are you thinking about getting involved with the metaverse but not sure which is the easiest way? Rather than purchasing a VR headset and actually entering the virtual universe, why not trade on related stocks, ETFs and more through an online broker?

1

GET STARTED WITH A DEMO ACCOUNT

Practise trading in a risk-free environment with £10,000 worth of virtual funds before transferring to a live account.

2

LEARN THE BASICS OF TRADING

Our most popular product is spread betting, which is tax-free in the UK*, so consult our guide on spread betting explained before jumping in.

3

KEEP UP WITH METAVERSE

Stock prices can fluctuate depending on new technology developments, conferences and events, so it’s good to stay up to date.

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