3 Ways To Invest In The Early Stages Of The Metaverse

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Contributor, Benzinga
February 15, 2022

With Goldman Sachs analyst Eric Sheridan predicting the Metaverse could be an $8 trillion opportunity, top tech firms like Meta, Google, and Microsoft have all invested in Metaverse-related technology. 

Microsoft's $69 billion acquisition of game developer Activision, the largest to date for Microsoft, is expected to give it enormous exposure to the Metaverse. Even Apple’s CEO, Tim Cook said he sees "a lot of potential" in the Metaverse. 

And it’s not only tech companies. Institutional investors like Blackrock are looking for investment opportunities as well. So how can the average investor participate in the early stages of this new technology? 

Exchange-Traded Funds

The easiest way to currently invest in the Metaverse is through an ETF or exchange-traded fund. ETFs are diversified, so can reduce volatility, which generally lowers risk exposure in the market. Investors can currently invest in the Roundhill Ball Metaverse ETF (META) fund directly through your brokerage account. It’s the largest and oldest fund at the moment and focuses on companies in the gaming, IAAS (Infrastructure as a Service) and computer hardware space. 

Top holdings include companies such as NVIDIA Corp (NASDAQ: NVDA), Roblox Corp (NYSE: RBLX), and Microsoft Corp (NASDAQ: MSFT).

The Gold Rush For Virtual Land

The race is on to stake as much virtual land as possible, and companies are spending millions to claim their share. Pavia, an NFT project with 100,000 parcels of land, has already sold out more than 60% of its lots. It’s based on the Cardano blockchain and has a strong community of over 8,700 unique NFT landowners.

Another popular project is Decentraland (MANA). Currently, nearly 7,000 wallet addresses are holding approximately 36 million MANA. As the crypto market rebounds from its latest dip Decentraland is gaining a lot of interest with institutional money and celebrities alike. 

Buying virtual land is still in its Wild West days, so there is risk involved.

Digital Assets Like Cryptocurrencies and NFT’s

With cryptocurrencies as the main form of payment inside the Metaverse, investors can gain exposure to the virtual world this way. Blockchain and NFT’s will verify ownership and act as contracts for everything from virtual land to concert tickets. MANA currently has a market cap of $4.11 billion and at the time of this article is trading for $2.25. As mentioned, it is one of the more popular projects and is built on the Ethereum network. 

Other Ways Investors Can Diversify Their Portfolios 

For investors that feel it’s still too early to invest in the Metaverse, there are alternatives. Some of these alternative assets have historically shown to be less volatile during downturns and periods of high inflation. 

Contemporary art is one alternative asset that’s outpaced the S&P 500 by 164% from 1995 to 2021. So it makes sense why both billionaires and celebrities alike are pouring money into alternatives like art. 

One platform that gives investors exposure to art is Masterworks.io. This $1 billion fintech with over 300,000 users allows you to take part in this booming asset class. They securitize million-dollar paintings and allow investors to buy shares just like stocks.