The Metaverse is a series of interconnected experiences that span both the digital and physical worlds, a new multisensory version of the Internet. Tech companies and well-known figures like Bill Gates often speak of its growing popularity and the transformative impact the Metaverse will have on our lives.
Because the technologies underlying the Metaverse are still nascent and evolving, there are a variety of exciting investment opportunities for traders and investors to explore.
Grayscale Investments believes the emerging industry has a potential of $1 trillion – this spans many sectors, from eCommerce to gaming to real estate and the entertainment space. This has already attracted the attention of major companies such as Microsoft, Adobe and Qualcomm, which are increasingly investing to develop the Metaverse and remain competitive in the coming years.
Metaverse and the technology
In October 2021, Facebook renamed itself Meta. This highlights the company’s interest in the metaverse as a virtual world where interaction between people is enabled by digital avatars. These avatars are controlled via virtual reality (VR) headsets like Oculus. Sales of Meta’s Oculus Quest 2 headset surpassed sales of Microsoft’s Xbox gaming console in 2021 – demonstrating consumer interest in this new technology.
Other tech giants like Apple, Google and Microsoft are also following Meta’s lead and developing their own VR headsets. This is a big milestone for the Metaverse, because the more tech companies that adopt this technology, the greater the chances of the Metaverse becoming ubiquitous technology.
Chip giant Nvidia, whose chips are already used in a variety of computer systems and servers today, has also put out feelers toward metaverse technology. Nvidia is considered one of the best semiconductor stocks in the long run and will benefit from metaverse applications. While the pending acquisition of ARM Holdings has not yet been confirmed. If it comes to fruition, however, Nvidia will be able to build an end-to-end ecosystem to boost computing power in applications that support the Metaverse.
Trading around the Metaverse
There are many ways to trade around the Metaverse: Buying relevant stocks, trading cryptocurrencies, or trading ETFs. A trusted broker like Plus500 offers the opportunity to do this. By means of a platform, interested parties can participate in the trading of a wide range of Metaverse-related instruments. Based on the wide range of trading instruments, it is thus possible to build a diversified portfolio that meets individual goals and needs.
Plus500 is a global multi-asset fintech company that also offers its clients trading opportunities in the Metaverse. The FTSE 250-listed company offers a world-class trading platform with access to 2.500 instruments available across multiple operating systems and web browsers. Investors benefit from improved trading conditions with tight spreads, no commissions, attractive leverage and advanced trading tools to mitigate risk.
One way to trade around the metaverse is relevant stocks. Contracts for Difference (CFDs) are a good option here for trading leading corporate stocks, including Facebook (now Meta), Nvidia and Disney. They have all invested billions in Metaverse technology.
ETFs are another way to make money in conjunction with the metaverse. For example, investors have the option of trading the Roundhill Ball Metaverse ETF, an index fund that tracks the performance of the Ball Metaverse Index. It includes 40 globally listed companies operating in the environment of the Metaverse. Traders can also participate in this technology through crypto CFDs, because because cryptocurrencies are the primary means of payment in the virtual world, they will also benefit from the growth of the Metaverse.
The Future of the Metaverse
In the new year, technology companies such as Apple, Cisco and Intel that are adapting Metaverse technology are well positioned to benefit from greater demand for semiconductor chips, processors and cloud services.
In addition, Non-Fungible Tokens (NFTs) and Decentralised Finance (DeFi) have proven that blockchain technology has myriad applications. Already, blockchain companies and cryptocurrency exchanges are raising capital to expand into this emerging technology space. Winklevoss twins’ cryptocurrency exchange Gemini closed a 400 million funding round in November 2021. US dollars off and plans to expand to multiple metaverses in 2022.
All in all, the future seems bright for the Metaverse. GlobalData forecasts show that U.S. large-cap stocks will rise in 2022 in the face of higher investment in technologies such as the Metaverse, cryptocurrencies, and Web 3.0 will see a sharp rise. Trading CFDs on stocks of companies that have embraced the technology, cryptocurrencies or the Roundhill Ball Metaverse ETF can be a first step for traders in this exciting environment.
By providing opportunities for traders to take advantage of emerging technology trends like the Metaverse, Plus500 is expanding its clients’ options while delivering on its promise to develop new trading products for clients every year. In 2021, the company launched Plus500 Invest, a new equity trading platform that allows traders to trade a wide range of assets. This also includes ETFs that are listed on major exchanges. Through the platform, traders around the world can invest in large companies that are involved in the metaverse.
This focus on technology innovation and customer success has led the company to deliver outstanding operational and financial results in fiscal 2021. Plus500 reported annual revenue of about $718 million.