SoFi Technologies, a major provider of online personal financing services, announced it had launched a Web3-based exchange-traded fund (ETF) for cryptocurrencies, blockchain, and other emerging technology investments, the Wall Street Journal reported on Tuesday.
The San Francisco-based bank will use the new ETF to track its Solactive ARTIS Web3 Index, which targets non-fungible tokens (NFTs), blockchain, the Metaverse, and artificial intelligence and big data.
The index, which ranks firms based on algorithmic web searches for keywords, will also feature companies such as Roblox, Meta Platforms, Amazon, and Hive.
Anthony Noto, Chief Executive of SoFi, said in a statement,
“There is a clear interest from our members to invest in Web 3. The SoFI Web 3 ETF provides a diversified way to invest in blockchain and crypto without the single-entity risk of one coin or one company”
The news comes just months after the HBAR Foundation opened a Metaverse Fund totalling $250 million USD to support its Hedera blockchain ecosystem. Hedera offers enterprise public networks for digital and decentralised financing, with use cases across healthcare, gaming, and others.
The platform also allowed British hospitals to track COVID-19 vaccine temperatures while being transported across the nation. Blockchains are commonly used for business transactions, performing security checks, verifying authenticity for NFTs, and tracing assets.
HSBC Holdings also launched a Metaverse portfolio for clients across Hong Kong and Singapore, targeting computing, infrastructure, virtualisation, and other Metaverse technologies.
Metaverse ETFs allow investors to also buy stocks traded from a dedicated fund manager similarly to mutual funds, providing access to a set of stocks monitored for performance and return on investment (ROI). Numerous Metaverse ETFs have surfaced in recent months, namely Subversive, Roundhill Ball, ProShares Metaverse Theme, and others.