In Focus: Megatrends  

How can advisers benefit from the metaverse?

  • Explain what metaverse means
  • Identify investment opportunities in the metaverse
  • Highlight risks associated with investing in the metaverse
CPD
Approx.30min

Digital payments company Square announced at the of 2021 that it was rebranding under the name Block. This was widely seen as a declaration of intent to enter the metaverse and blockchain space. 

What are the risks?

Of course, with all investments there are risks in investing in metaverse-related companies.

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The technology relating to metaverse is new and developing. Therefore the risks associated may not fully emerge until the technology is widely used.

However, one major potential risk worth bearing in mind is that metaverse-related technology may never be implemented to a scale that provides identifiable economic benefit to the companies included in the theme. 

Furthermore, given that the metaverse is still in its infancy, it is difficult to be certain about the regulations that may accompany the growth of this virtual environment.

The application of existing laws may prove to be ineffective, which could mean that courts will be tasked with creating new legal frameworks to govern this relatively unbounded space.

Just as the internet had to endure an online safety revolution, we can predict that metaverse will also face similar challenges. But the impact that these questions, and outcomes, will have on AR remains to be seen.

Bradley Duke is manager of the ETC Group Global Metaverse ETF

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to a report referenced by the author, how long will people spend in the metaverse daily by 2026?

  2. Who said in two to three years all virtual meetings could be held on the metaverse?

  3. According to the author it is too early to fully assess risk in metaverse investments. True or false?

  4. According to the author, what could become a core commercial part of the metaverse?

  5. What is a major risk of metaverse investing?

  6. What type of companies are part of the creator economy segment?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain what metaverse means
  • Identify investment opportunities in the metaverse
  • Highlight risks associated with investing in the metaverse

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