MTVR Metaverse Report (July 22-July 29)

Industry updates from the Fount Metaverse ETF (MTVR). 
Click here to access the full list of holdings. 

 

Xiaomi’s Metaverse Related Patents 
Tech giant Xiaomi’s recent patents show the company’s attempts to further progress into the metaverse. They received authorization for a magnetic AR (augmented reality) glasses patent. The glasses include a frame, the first temple, and the second temple, 97 micro sensors, and communication modules. This news comes after Xiaomi experimented with Smart Glasses in September 2021. [1]

Xiamoi has also introduced a patent, titled Virtual Character Processing Method, Device, and Storage Medium, that utilizes blockchain technology to create virtual characters for the metaverse. The patent elaborated that Xiaomi’s virtual characters will be generated using different gene sequences meaning that each one of the characters will be unique and unpredictable. [2]

 

Xiaomi

 

 

Tommy Hilfiger Opens Virtual Store on Roblox 
Tommy Hilfiger has opened a shop called Tommy Play in Roblox’s metaverse. Tommy Shop is a virtual and immersive experience to show off the brand’s newest designs. It also has interactive events like parkour, bike courses, and freeze tag to get people playing while they learn more about Tommy Hilfiger’s offerings. [3]

Tommy Hilfiger will also live stream their New York Fashion Week show on Roblox, where avatars wearing the collection will strut down a catwalk in a virtual New York City. [4]  

 

Roblox

 

 

Kakao to Expand NFTs 
Kakao’s blockchain subsidiary, Ground X, has formed an alliance to popularize and expand the use cases in the NFT (non-fungible token) ecosystem. The alliance, called GRID, consists of around 50 companies including Shinhan’s banking and credit card subsidiaries, Amore Pacific, Lotte Department Store, and Kakao Games. Ground X will support companies in GRID by providing digital infrastructure services. [5]

 

Kakao/Ground X

 

 

HYBE’s NFT Venture to Launch Soon 
Dunamu, the operator of South Korea’s Upbit crypto exchange, and HYBE, the entertainment agency managing K-pop groups BTS, TXT, and Seventeen, confirmed that that they will be launching their NFT and Web3 business later this year. Although specific details have yet to be released, Dunamu said their NFT business will be based on the intellectual property of K-pop artists. [6]

 

 

HYBE

 

 

 

Learn how to invest in your future experiences with Fount ETFs

 

The Fount Metaverse ETF (MTVR)

The Fount Metaverse ETF (MTVR) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index.  The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.

MTVR may be an attractive vehicle for investors looking to invest in the metaverse.

For a full list of MTVR holdings, please click here.

 

The Fount Subscription Economy ETF (SUBS)

The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Fount Subscription Economy Index. The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue.

SUBS may invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.

For a list of SUBS holdings, please click here.

 

 

 


 

1) “Xiaomi Gains Magnetic AR Glasses Patent, Advancing Metaverse Layout,” Pandaily, July 22, 2022. 
2) Goschenko, Sergio. “Xiaomi Files Patent to Create Its Own Blockchain-Powered Virtual Characters,” Bitcoin.com, July 22, 2022
3) Meers, Whitney. “Roblox fashion expands even further with in-game Tommy Hilfiger shop,” PC Games, July 22, 2022
4) Waldman, Sophie. “Tommy Hilfiger to Host NYFW Show Inside Roblox's Metaverse,” Hypebeast, July 28, 2022 
5) Park, Danny. “Kakao’s Ground X forms business alliance to expand NFT use cases, services,” Yahoo, July 22, 2022
6) Park, Danny “Dunamu’s NFT venture with BTS’s HYBE to launch services later this year,” Yahoo, July 25, 2022. 

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Inhee Lee

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

Risk Disclosure:

 

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 

 

The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.

 

For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities. 

 

Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.

 

The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.