Sachin Bansal’s Navi Group is the first to capitalise on the growing popularity of metaverse by filing initial papers for its proposed metaverse ETF Fund of Fund with SEBI, reported Hindu Business Line. Navi Metaverse ETF Fund of Fund (FoF) is an open ended scheme, will allocate 95-100 per cent in units of overseas ETFs that invests in companies engaged in Metaverse, according to the Scheme Information Document.
The indicative list of overseas ETFs in which the scheme is likely to invest include Proshares Metaverse ETF and Roundhill Ball Metaverse ETF, wrote Business Line.
Top index constituents
The latest fact sheet of Proshares Metaverse ETF revealed that the top10 weighted companies are: Apple Inc, Alphabet Inc, Microsoft Corp, Meta Platforms Inc, Nvdia Corp, Himax Technologies, Amazon, Vuzlx Corp, Snap Inc and CEVA Inc.
For Roundhill Ball Metaverse ETF, Roblox Corp, Meta Platforms, Nvdia, Unity Software Inc, Microsoft Corp, Snap Inc, SEA Ltd, Amazon Inc, Apple Inc and Autodesk Inc are the top10 weighted companies.
According to Navi’s Metaverse ETF, the benchmark would be Solactive Metaverse Theme Index.
According to the SID, the minimum application amount for Navi Metaverse ETF FoF will be ₹500 and in multiples of Re 1. The scheme will invest a maximum of $300 million per mutual fund in overseas ETF within the overall industry limit of $1 billion.
Meanwhile, Aditya Birla Sun Life Mutual Fund has also filed scheme information document with markets regulator SEBI for Blockchain and Virtual Digital Assets ETF FoF.
The open-ended FoF scheme will invest up to 95-100 per cent in units of ETFs focused on the global blockchain theme (including virtual digital assets such as crypto and NFTs). The minimum application amount during the new fund offer period will be ₹100 and in multiples of Re 1 thereafter.
Investment avenues
The list of ETFs in which the fund house may invest include Amplify Transformational Data Sharing ETF, Siren Nasdaq NexGen Economy ETF, First Trust Indxx Innovative Transaction & Process ETF, Bitwise Crypto Industry Innovators ETF, Global X Blockchain ETF, Invesco CoinShares Global Blockchain UCITS ETF, VanEck Digital Transformation ETF, First Trust SkyBridge Crypto Industry and Digital Economy ETF, ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF.
Benchmark for the FoF would be MSCI ACWI IMI Blockchain Economy Index.