Metaverse Technologies May Redefine Traditional Gathering Spaces
Metaverse technology is breaking down the divide between the physical and digital worlds. As a result, traditional gathering spaces are evolving, and the definition of a home, event, and even a vacation is evolving.
New Virtual Venues
No longer do individuals have to travel to stadiums, arenas, or theaters to take in performances or for entertainment. Now, you can sit in the comfort of your home and attend events in virtual space.
A survey conducted by Wunderman Thompson Intelligence (WTI) found that over 60% of respondents found attending a digital concert, play, or musical appealing. Some 78% founds digital movies appealing.[1]
Concerts from performers such as Lil Nas X, Ariana Grande, Post Malone, and BlackPink have already been held in virtual spaces such as Fortnite and Roblox.
Virtual venues are also playing host to smaller, more intimate gatherings. A social entrepreneurship festival hosted 40 people in a networking and mingling event. Virtual social clubs, nightclubs, and cabarets are popping up.
Virtual venues have the flexibility to host events with the number of attendees ranging from several people to millions.
Liminal Spaces – Blending the Physical and Digital
A liminal space blends elements of both the physical and digital worlds. Often, digital elements are transposed onto the physical. One example includes an augmented reality (AR) exhibition that projects virtual sculptures along New York’s High Line, which are visible through the use of special glasses.
Other installations include virtual artwork that moves and transforms in response to visitors’ movements. One production in London of an adaptation of Shakespeare’s A Midsummer Night’s Dream pairs live actors with light and technology to transform the actors on stage and bring the audience into the production, enabling them to participate as fireflies.
The possibilities of liminal spaces could extend to retail spaces, brand hubs, and business centers.
Digital Real Estate
Real estate is now being sold in virtual worlds in the metaverse. Mars House, the world’s first digital house, sold for $500,000 in March 2021. Virtual worlds, such as Decentraland and the Sandbox, have sold millions of dollars’ worth of virtual real estate. Buyers are able to monetize their spaces, setting up virtual stores or other types of business outlets.
Virtual real estate may allow owners to develop and monetize space within the metaverse.
Travelportation
Companies, such as Microsoft, are creating travel experiences through metaverse technology. Donning virtual reality headsets, individuals may travel to faraway locations to which they may not be able to travel physically. Such technology may be a boon to individuals with mobility issues.
How may individuals gain exposure to metaverse-related companies?
The Fount Metaverse ETF (MTVR)
The Fount Metaverse ETF 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 to gain exposure to metaverse-related companies.
For a full list of MTVR holdings, please click here.
[1] All data sourced from: Into the Metaverse, Wunderman Thompson Intelligence, 9/14/21
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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.
