The metaverse remains an area of interest for forward-thinking investors looking to invest in promising technologies. Read on to find out what the metaverse is and learn about the different ways you can invest in it.
What Is the Metaverse?
The metaverse is a term used to describe a virtual world existing parallel to the real world.
Although the concept has been around since Neal Stephenson wrote his sci-fi novel Snow Crash in 1992, the term has found new meaning and gained a lot of attention in recent years. This can be attributed to the fact that technology has advanced enough to the point where it is possible to create an immersive virtual world that offers people a three-dimensional experience.
Neal’s book showcases a dystopian society where people use virtual reality headsets, cellphones, wireless internet, and avatars to access the ‘metaverse’ – a fictional digital realm separate from the real world. Thanks to technological advancement, the metaverse is no longer a work of fiction.
The metaverse can be seen as a network of virtual worlds that enables individuals to digitally interact with each other using avatars in real time. It’s like a parallel universe where people can get to spend their digital existence.
This virtual universe is made possible by integrating immersive platforms that support social and transactional interactions using hardware like virtual reality headsets.
Although there isn’t a single unified digital world known as the metaverse (yet), several early-stage standalone virtual worlds can be considered components of the metaverse. Examples include blockchain-based virtual worlds, such as Decentraland and the Sandbox. Such projects are giving us a glimpse into what the end result of how the metaverse may look in the future.
5 Ways to Invest in the Metaverse
The metaverse could become the next step in the evolution of the Internet. As a result, investors have been actively seeking opportunities to invest in the metaverse at an early stage to benefit from its future growth.
Let’s take a look at five ways you can invest in the metaverse today.
Purchasing Metaverse Stocks
One of the easiest and most accessible ways to invest in the metaverse is by purchasing shares of publicly traded companies that are currently developing the technology necessary to create the metaverse. There are many metaverse stocks to choose from, including Meta (META), Apple (APPL), Microsoft (MSFT), and Roblox (RBLX).
Meta is at the forefront of building the metaverse and even changed their name from Facebook to Meta to reflect its focus as a metaverse company.
Investing in Metaverse ETFs
Metaverse ETFs are another great opportunity for investors to get exposure to the metaverse industry. Exchange-traded funds (ETFs) are investment funds that track the performance of a particular market, sector, or asset. Just like stocks, ETFs are traded on exchanges. A Metaverse ETF allows people to invest in a group of companies actively contributing to developing the metaverse. Examples of Metaverse ETFs include:
- Roundhill Investment ETF (Roundhill Ball Metaverse ETF)
- iShares Metaverse UCITS ETF
- Franklin Metaverse UCITS ETF
Buying Metaverse Tokens
Buying metaverse tokens provide another option for investing in the metaverse. Every metaverse that is powered by a blockchain has its own token or tokens typically used to make transactions in the particular digital world. You can trade these tokens for fiat currencies or other cryptocurrencies.
There are several metaverse tokens that you can add to your portfolio. These include:
- MANA – the native token for Decentraland.
- AXS – the native token for Axie Infinity.
- SAND – the Sandbox’s native token.
Buying the Metaverse Index Token
Investing in Metaverse Index (MVI) tokens is another way of adding metaverse exposure to your portfolio. This ‘basket’ or collection of various cryptocurrencies allows you to spread your risks across a broad range of metaverse tokens.
So, instead of investing in the various metaverse tokens separately, you can invest in an index that includes all the significant metaverse tokens and thus reduce your risk.
For example, the Metaverse Index (MVI) is an ERC-20 token that tracks the trends of companies in the entertainment, business, and sports sectors that are moving into the virtual world. Investing in the MVI token allows investors to be a part of a wide variety of projects dedicated to building the metaverse, such as Enjin Coin (ENJ), Illuvium (ILV), and Decentraland (LAND), among others.
Acquiring Virtual Land NFTs
Buying virtual land NFTs is another way to dip your toes into metaverse investment. Virtual land NFTs are digital plots of land. Once purchased, the owners can do whatever they like with it, including developing the land, leasing it out to advertisers, or selling it later for a profit, just like physical land.
Some popular platforms that sell virtual land NFTs include Sandbox and Decentraland. For instance, a plot of land sold for $900,000 on Decentraland in 2022. This is just one example that shows how lucrative these virtual pieces of land can be.
The Bottom Line
The metaverse is an exciting industry that is rapidly evolving and has the potential to change the way we live, work, and play. There are currently several ways to invest in the metaverse, including buying stocks in metaverse-focused companies, ETFs, metaverse tokens, and virtual land.
While there are significant risks to investing in the metaverse, the potential rewards could be substantial for those willing to take calculated risks.
Disclosure: This is not financial or investment advice.