Talking Point  

Metaverse offers 'real-world opportunities' for investments

Metaverse offers 'real-world opportunities' for investments

The Metaverse can offer “real-world business opportunities for investment”, Dina Ting, head of global index portfolio management - Franklin Templeton, said.

The metaverse, still in its infancy, is a shared virtual and mixed reality, powered by digital technologies. 

It is expected to influence many aspects of people’s lives - including how they interact, socialise, learn, shop, work and play virtually. It combines aspects of social media, online gaming and augmented virtual reality and is widely regarded as the next iteration of the internet.

Ting said: “Society has already experienced three foundational changes in the way that technology operates and how it’s been delivered since the early 1970s. This exciting fourth wave is now emerging, enabled by blockchain technology.

“Many big tech companies have already pivoted towards the metaverse for their next major area of development in the same way that many did at the inception of the internet. There appear to be tremendous real-world business opportunities for investment in this space considering that by 2030, the e-commerce market could grow between $2 and $2.6tn.

“Blockchain technology development is propelling metaverse expansion possibilities in compelling and far-reaching ways. We believe that investment in the metaverse and its rising sophistication bode well for the next iteration of the internet, which could profoundly impact societies and global economic growth.”

Franklin Templeton recently launched a UCITS ETF, offering European investors access to companies across the metaverse. The ETF tracks the Solactive Global Metaverse Innovation Net Total Return Index comprised of global equity securities issued by companies that have, or are expected to have, significant exposure to the metaverse and supporting blockchain technologies. 

Companies that are deemed to not align with UN Global Compact Principles are excluded from the index.