Further cementing the long-term viability of the metaverse investment thesis, high-level executives at some Fortune 500 companies are increasingly eyeing metaverse expenditures.
That could be a long-term positive for metaverse-related equities and exchange traded funds such as the Fidelity Metaverse ETF (FMET). While the metaverse as an investment opportunity is in its infancy — as is FMET — a surprising number of corporate leaders are signaling that they see value in this space.
“According to a recent PwC survey, two-thirds of top executives in the US report that their companies are actively engaged in the metaverse in some way,” reported InformationWeek. “These businesses are building proofs of concept, testing use cases and even generating revenue from metaverse platforms or (more commonly) the underlying technologies. Eighty-two percent of executives expect metaverse plans to be part of their business activities within a few years.”
With a percentage like that, it’s clear that investors need depth to properly capitalize on the metaverse investment opportunity set. FMET, which tracks the Fidelity Metaverse NR USD, provides that breadth. Home to 56 stocks, which is a fair amount for a thematic ETF, FMET is not constrained by sector or geography, although it is a passively managed fund.
Those advantages are relevant for long-term investors because the metaverse is vast and so are the related investment opportunities. Related ETFs, such as FMET, should be up to the challenge.
“Half of executives say the metaverse will either be the next incarnation of the internet, or it will completely revolutionize business as we know it,” according to InformationWeek. “Meanwhile, the majority of consumers are excited about the metaverse, yet less than 10% currently use a metaverse environment. Keep in mind that despite the hype, metaverse adoption will be more of an evolution, taking place over years with different components maturing at different times.”
Another area that’s applicable to some FMET member firms is metaverse risk. Obviously, this is a new concept rooted in the internet and technology, meaning potential risks abound. Those risks bring opportunity. FMET is positioned to help investors capitalize.
“Organizations that are active in the metaverse need to act quickly to build trust and decrease risks to protect intellectual property, financial transactions, customer data and the customer experience. This may require new processes to better meet evolving compliance challenges, complex tax requirements and risks associated with blockchain, cryptocurrencies and NFTs,” concluded InformationWeek.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.