Metaverse exchange-traded funds are thriving in South Korea, as normal investors flock to funds focusing on the next frontier of technology. South Korea’s metaverse ETFs were the first to appear in Asia as interest in the next generation of the internet grew last year. ETFs are a group of stocks or bonds that closely resemble market indices and offer investors better diversification.
Metaverse, popping up in South Korea
Metaverse refers to existing and future integrated digital platforms focusing on virtual and augmented reality. It is widely regarded as the internet’s next frontier, with the IT industry and other sectors seeing it as a substantial economic and financial opportunity.
South Korea’s metaverse ETFs were the first to appear in Asia as interest in the next generation of the internet grew last year. ETFs are a group of stocks or bonds that closely resemble market indices and offer investors better diversification.
According to Rahul Sen Sharma, managing partner of index provider Indxx, South Korea’s first four metaverses ETFs launched in October and garnered inflows of $100 million in just under two weeks. However, South Korea is not alone, in the United States, Metaverse ETFs have been popping up, with analysts predicting that more will follow soon, CNBC posted.
The data from Samsung Asset Management, which launched two of the ETFs, eight metaverse ETFs were listed in South Korea as of Jan. 19, attracting over $1 billion in inflows. More than $800 million was invested in four ETFs focused on South Korean metaverse-related stocks, while more than $338 million was invested in global metaverse ETFs, according to the data.
Metaverse attracts interest of retail buyers
According to Share Market News, the launch of metaverse ETFs in South Korea has caught the interest of regular buyers. According to Samsung Asset Administration data, retail buyers account for more than 70% of inflows into domestic and international metaverse ETFs in South Korea.
Sharma of Indxx shared that the metaverse is considered one of the most talked-about significant matters of 2021 in South Korea. These high fund movement numbers reflect a generally upbeat attitude toward the metaverse theme. Sharma shared the developments that show the metaverse’s growing popularity among South Korean inhabitants and the government.
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