Investing in the Metaverse and NFT industry is possible through various options. Although it requires a degree of cryptocurrency awareness and expertise, buying non-fungible crypto assets and tokens is the easiest. However, using the Metaverse index or an NFT ETF changes that narrative for the better.
More investment vehicles are beneficial
The metaverse continues to generate a lot of media headlines, mainly due to growing interest from established tech players and brands. Companies like Meta FacebookGoogle GOOGLApple AAPLMicrosoft MSFTand Nike NKE conducted research and development regarding the opportunities of the metaverse. Moreover, a virtual world blurring the lines with the real world introduces many opportunities to transform commerce, social activities and work.
As these companies generate excitement for the metaverse, people are increasingly looking for new investment opportunities. Many missed the initial cryptocurrency bandwagon and only started paying attention to digital assets when Bitcoin hit $40,000. Although the leading cryptocurrency still has huge upside potential, so does Ethereum ETH/USD and others – many people feel they have lost the opportunity to get in “early and cheap”.
With the Metaverse and NFTs, things are a bit different, however. Both trends are still relatively new, although several projects have already achieved multi-million dollar sales per asset. Examples include CryptoPunks and Bored Ape Yacht Club – two prominent NFT projects still generating massive sales volume today. Metaverse projects including Axie Infinity, The Sandbox, and Decentraland have succeeded in their own way, with over $100 million in investment and a market capitalization of several billion dollars in total.
Setting up an NFT or Metaverse wallet often requires investing in multiple projects and hoping for the best, so to speak. Fortunately, things are looking up a bit on that front. The recent addition of the Metaverse Index (MVI) and the Defiance Digital Revolution ETF makes things more accessible and simpler.
Why the Metaverse Index Matters
The Metaverse Index provides price exposure to the performance of over a dozen promising and prominent Metaverse projects. It’s an attractive option for those looking to invest in the broader metaverse space without committing to a specific project.
The crucial benefits of an investment vehicle like the Metaverse Index include:
A simple way to capture a growing market trend (Metaverse) without requiring investors to search and rebalance their portfolio manually
An index – basket of tokens – can offset the volatility of one or more tokens
A more efficient approach to buying and selling individual tokens with reduced transaction costs
Transparent process and rules for including/removing tokens
The Metaverse index is accessible on the Ethereum mainnet, which means that it does not require any centralized service provider to allow users to access this investment option. Users can interface directly with the token address to make an investment, making it a universally accessible vehicle.
The benefits of the NFT ETF
An exchange-traded fund is primarily a passive means of seeking price exposure. ETFs are found in many sectors, including finance, technology and now non-fungible tokens (NFTs). Investors are exposed to the performance of industry players that are catalyzing the widespread adoption of this technology. And NFT ETFs are emerging in the crypto world as The Defiance Digital Revolution ETF.
With NFT ETFs, they are democratizing access to investing in an exchange-traded fund that follows one of the most attractive trends in cryptocurrency and blockchain today. Additionally, an ETF eliminates the need for users to go through a steep learning curve on NFTs and individual projects in this space. Additionally, users are exposed to multiple collections and their value for money through the ETF, rather than having to purchase coins from individual collections, which can result in high transaction fees.
More investment vehicles to follow
When it comes to investment preferences, there are plenty of alternative options in the NFT market, as well as cryptocurrency brokerage services and even regular trading operations. NFT markets are of particular interest in this regard, as they can sell single assets at flat rates or run auctions for any number of accepted currencies. Investors should look into the given market and look for items of interest that they can bid on and possibly acquire for later resale or collection. The resemblance of marketplaces to traditional auction houses is present, as evidenced by OpenSea, which positions itself as a place for the sale of rare digital objects and collectibles. There are many alternative platforms including NBA Topshot, Rarible, Nifty Gateway, Axie, Mintable, Foundation and others.
KuCoin recently supported the launch of two funds to strengthen the innovation of the Metaverse space and reduce barriers to investment in the Metaverse for new users – Metaverse Fund launched by KuCoin Labs and The Creator Fund launched by KuCoin Ventures – to invest $100 million each in Metaverse, NFT and Web 3.0 startups, funding these projects to develop and deliver more innovative products. Projects will also receive technical, marketing and consulting support from KuCoin.
If the instant purchase of an NFT is not part of the investor’s plans, he can always resort to venture capital companies engaged in investing in the given market, or to the infrastructure development niches of the NFT and cryptocurrency industry. The downside is that accreditation as an investor is a prerequisite for engaging in venture capital.