The metaverse represents the next generation of the internet, an expansive network made up of shared virtual worlds and real-time simulations. Although still in development, the metaverse will be a place to work, play, shop and interact with friends, totally immersed in a virtual dimension. This new reality is placed in the middle of several contemporary megatrends such as social networks, online gaming, the creation of multimedia content and augmented reality.
To give investors the opportunity to invest in this megatrend, BNP Paribas announces the issue on the EuroTLX (MTF) sub-fund of Borsa Italiana of a new Open End Tracker Certificate on the metaverse (ISIN XS2422069596). It is a barrier-free product with a fixed maturity (therefore defined as Open End), which linearly replicates the performance of the underlying index, the Bloomberg Metaverse Net Return Index.
“The Metaverse is here, and it’s not just transforming the way we see the world, but the way we participate in it,” said Microsoft CEO Satya Nadella.
Revenue generated by the metaverse is expected to grow at a rate of approximately 50% annually over the next decade and further new revenue opportunities will be accelerated by the expansion of these virtual platforms, such as live entertainment events such as sports or concerts that are brought into the metaverse. Despite being a recent phenomenon, the metaverse is rapidly expanding and gaining a place in the mainstream. The platform will represent over $ 600 billion in revenue potential by 2030making it one of the most interesting and attractive developments today.
L’indice Bloomberg Metaverso Net Return Index
The index was created by Bloomberg Intelligence, a dedicated team of about 400 analysts who had the task of selecting a unique mix of companies belonging to the Technology, Retail and Media industries, taking advantage of the rich databases of the Bloomberg financial platform. The Bloomberg Metaverse Net Return Index (EUR) tracks the price movements of 20 of the largest companies that generate a significant portion of their profit from Metaverse-related businesses. The index reviews its composition on a quarterly basis according to the criteria described below:
- Starting universe: screening of keywords such as “Metaverse”, “Shared Experiences” or “Virtual World” within the company documents available on the Bloomberg terminal.
- Thematic Suitability and Liquidity Parameter: 20 companies are selected on the basis of an aggregate score consisting of the assessment of market capitalization, liquidity and thematic suitability.
- Attribution of weights to companies: the weight of companies in the index is attributed in a way that balances sector exposure with a mechanism that prevents larger companies from acquiring dominant positions vis-à-vis emerging companies. The top 5 most capitalized companies can weigh up to 8% each. From the eighth largest company, the weight is limited to 4%. Finally, the excess weight is redistributed proportionally to the remaining companies.
The details of the new Tracker Certificate
The BNP Paribas Open End Tracker Certificate allows you to linearly replicate the performance of the underlying index investing in the metaverse. They are a suitable tool to invest with a medium-long term time horizon, allowing you to benefit from the positive performance of the Bloomberg Metaverse Net Return Index. The Open End Tracker Certificates do not have a predetermined expiry date (Open End), however investors will be able to buy and sell them at any time thanks to the listing on the EuroTLX of Borsa Italiana and the presence of BNP Paribas as market maker, which guarantees liquidity. Both the Tracker Certificate and its underlying index are denominated in euros.
Finally, it should be noted that BNP Paribas has already issued four Open End Tracker Certificates last April that allow investors to focus respectively on four megatrends: renewable energy (ISIN XS2348170940), technology (ISIN XS2348171161), water (ISIN XS2348171245) and waste management (ISIN XS2348171757).
To find out more about the Bloomberg Metaverse Net Return Index (EUR) Tracker Certificate visit: https://investimenti.bnpparibas.it/prodotti-di-investimento/Tracker-Certificates-megatrend/investire-sul-metaverso/
More information on BNP Paribas’ Open End Certificate Tracker range can be found at https://investimenti.bnpparibas.it/prodotti-di-investimento/Tracker-Certificates-megatrend/