Have you ever wondered about the Fidelity Metaverse ETF, whether it’s legit, and if the Metaverse really stacks up to expectations? If this is something you have been considering, our experts are on hand to help ensure you have the most effective tools for your earning goals. So, without further ado, we’ll be considering some of the most important facts you should know about the Fidelity Metaverse ETF to help inform your decision overall.
What is the Metaverse?
Before we go any further, it’s perhaps worthwhile to outline what the Metaverse actually is. The Metaverse, at its simplest, is an online virtual reality, combining a broad network of virtual universes into a single world. However, in the context of ETFs (exchange-traded funds), the Metaverse ETF is a themed fund investing exclusively in stocks and shares related to the Metaverse. While this might sound like a highly specific niche, this is a potentially lucrative opportunity since the Metaverse is often considered the next big leap in the digital world.
In fact, a 2021 report concluded that the Metaverse’s value would be a $10 billion venture; meanwhile, investment companies have quoted the Metaverse’s worth as being in the trillions. Therefore, the opportunities that the Metaverse could provide are evident – making new exchange-traded funds, such as the Fidelity Metaverse ETF, incredibly appealing to a growing audience.
What is the Fidelity Metaverse ETF?
The Fidelity Metaverse ETF (FMET), is a new ETF that has been developed by Fidelity Investments, a Boston-based financial services provider. This Fidelity ETF is unique in that it focuses on areas of current interest in the Metaverse, including the Metaverse itself, NFTs, cryptocurrencies, and environmental and social policies related to Web3 and crypto.
In addition to FMET being one of the newest options on the market, it is also somewhat controversial in its representation of investing in the Metaverse. We’ll touch on why later in this post.
Of note, the Fidelity Metaverse ETF is also available in Europe, further strengthening its accessibility in the market.
What is Fidelity Decentraland?
The ETF launched alongside The Fidelity Stack, which is an eight-story virtual building in the Metaverse known as Decentraland.
The idea behind the Fidelity Stack is to educate people on finances and education. It is essentially an education center aimed at the new generation. Fidelity is hoping to get younger people thinking about investing at an early age.
Pros and cons of the Fidelity Metaverse ETF: The pros
The biggest pro of FMET is the fact that it is an easy-to-buy ETF dedicated to investors who would like to invest in the Metaverse but don’t know where to start. In the Web3 world of Metaverses, NFTs, and cryptocurrencies, it’s hard to know which of the hundreds or thousands of digital platforms and/or currencies to put your money into.
Fidelity has done a lot of the work of doing research into companies that help to contribute to the Metaverse in one way or another. If you believe in Web3 and all its applications and currencies, FMET is a great way to invest in the simplest manner possible with fiat currency.
Pros and cons of the Fidelity Metaverse ETF: The cons
With that being said, FMET isn’t doing too great as an ETF so far.The ETF is down since its inception, though there is the consideration of the rest of the market being overall down too. It unfortunately hasn’t had a chance to prove itself as a competitive ETF to invest in as of yet. As such, it may be a risky time to invest in FMET until the general market trend begins to return to its former bullishness.
Another con of FMET is the fact that some companies you think would have made it on the list have not, for one reason or another. Companies like GameStop, Roblox, Unity, or Super League Gaming.
Why aren’t they on there? We can’t think of a reason why they shouldn’t be. This is one of the more controversial flaws this ETF has, in our opinion. By excluding the aforementioned companies that play or are positioned to play a big role in the advancement of the Metaverse, you have to wonder if this ETF accurately represents the future of the Metaverse that investors think they’re investing in.
Is the Fidelity Metaverse ETF Legit?
Fortunately, Fidelity is a highly-praised and well-known brokerage company. As such, the Fidelity Metaverse ETF is indeed a legit ETF in terms of trustworthiness.
However, don’t conflate legitimacy with guaranteed profit with the Fidelity Metaverse ETF; any investment is subject to risk, and so you should only invest money you can afford to lose.
Who is the Fidelity Metaverse ETF For?
The Fidelity Metaverse ETF is primarily aimed at younger investors, but the project might be intriguing for anyone who already has an interest in the Metaverse itself, including NFTs and cryptocurrency.
How to Buy Fidelity Metaverse ETF
The Fidelity Metaverse ETF is available through an ever-expanding number of trading platforms. Just type in the ticker symbol ‘FMET’ and you should see it pop up as “Fidelity Covington Trust Metaverse ETF.” It’s listed on the New York Stock Exchange and on Nasdaq, so it should be widely available to trade. Platforms that currently have it include:
- Interactive Brokers
How Much Does the Fidelity Metaverse ETF Cost?
Fidelity’s EFT price currently falls at around $23 at the time of this publication, although the price fluctuates significantly. Considering that the Fidelity Metaverse ETF is relatively new, having only launched in April of 2022, it’s hard to give a price prediction at this time. However, it’s important to note that this ETF has dropped from its initial inception price of around $22. Although it does look to be rebounding from a low of $18, it is still a very risky investment.