Trading the Future: What is the Metaverse and How to Trade it | Forexlive
It is safe to assume that in one way or
another you have encountered the word “metaverse” before. But do you know what
it actually means?
The metaverse is a set of interconnected and
experiential worlds spanning the digital and physical realms, an emerging
multisensory iteration of the web. It is the frontier of the next stage of the internet’s
evolution with technology giants and leaders like Bill Gates often speaking of
its rising popularity, and the transformative effect it will have on our lives.
Makes its Way into The Investment Realm
Unsurprisingly the metaverse’s increasing
popularity and potential has driven investment interest amongst traders.
Moreover, since the technologies that underpin the metaverse are still emerging
and developing, there is a wide variety of exciting investment opportunities
for traders and investors to explore.
Grayscale Investments projects that the
industry is a $1 trillion revenue opportunity across everything from eCommerce and gaming to
real-estate and entertainment. This has already caught the attention of major
companies like Microsoft, Adobe and Qualcomm, who are investing more to explore
the metaverse and remain competitive in the years to come.
Playing the Tech Field
Metaverse made a big impact in 2021. The buzz
created by this futuristic virtual world was driven by the adoption amongst the
big tech companies.
In October 2021, for example, Facebook
rebranded itself as Meta, reflecting its interest in the metaverse as a virtual
world where interactions between humans are made possible through digital
avatars. These avatars are controlled through virtual reality (VR) headsets
like Oculus. Incidentally, Meta’s Oculus Quest 2 headset sales crossed those of Microsoft’s
Xbox gaming console sales in 2021, showing the interest amongst
consumers to engage with this new technology.
Other tech giants such as Apple, Google, and Microsoft are also
following in the footsteps of Meta by developing their own VR headsets. This is
a huge milestone for the metaverse, given that as more tech companies adopt
this technology, the chances of the metaverse as a pervasive technology will increase.
Chip giant Nvidia has also dipped its toes
into metaverse technology through its chipsets, which are already deployed in a
variety of centralised computers and servers. Hailed as one of the best
semiconductor stocks for the long term, Nvidia stands to gain from metaverse
applications. While its pending buyout of ARM Holdings is still unclear, if it materialises,
Nvidia will be able to construct an end-to-end ecosystem to boost computing
power in applications that support the metaverse.
the Metaverse with Plus500
There are many ways to trade the metaverse; purchasing
related stocks, trading cryptocurrencies, or trading ETFs. These assets can all
be accessed through a trusted broker like Plus500. Using Plus500’s platform,
traders can gain exposure to the wide range of metaverse-related instruments
mentioned above. The variety of access points available through Plus500 can
also bring a myriad of benefits, including the ability to build a diversified portfolio
to cater to individual goals and needs.
Plus500 is a global multi-asset fintech
company that provides its clients trading opportunities in the metaverse’s burgeoning
realm. The FTSE 250-listed company offers a world-class trading platform with
access to 2,500 instruments, and is available on multiple operating systems and
web browsers. Traders can access enhanced trading conditions with tight
spreads, no commissions, attractive leverage, and advanced trading tools to
One way to trade the metaverse is through
relevant stocks. Plus500 offers contracts for difference (CFDs) to trade leading
companies, including Facebook (now Meta), Nvidia, and Disney, all of which have
invested billions in metaverse technology.
ETFs are another way to gain access to the
metaverse. Plus500 offers traders the opportunity to trade the Roundhill Ball
Metaverse ETF, an index fund that tracks the performance of the Ball Metaverse Index,
comprising 40 globally listed companies involved in the metaverse. Traders can
also gain exposure to this technology through Crypto CFDs. As cryptos are the
main form of currency in virtual worlds, they stand to gain from the metaverse
revolution as well.
Does the Future Hold for the Metaverse?
In 2022, technology companies like Apple,
Cisco and Intel, who have also adopted metaverse technology, are
well-positioned to reap the benefits of greater demand for semiconductor chips,
processors, and cloud services.
Moreover, non-fungible tokens (NFTs) and decentralised
finance (DeFi) have also proven that blockchain technology has unlimited applications.
Already, blockchain companies and cryptocurrency exchanges are raising capital
to expand into this emerging technology sphere. The Winklevoss twins’ crypto
exchange, Gemini, closed a $400 million equity growth funding round in
November 2021, with plans to expand the exchange services across multiple
metaverses in 2022.
All in all, the future seems bright for the
metaverse. Forecasts by GlobalData reveal that large-cap US stocks stand to
surge in 2022, amid higher investments in technologies including the metaverse,
cryptocurrencies, and Web 3.0. Thus, engaging with the metaverse ecosystem is a
move that might be worth taking, and trading CFDs on stocks of companies that have adopted this technology,
Cryptocurrencies, or the Roundhill Ball Metaverse ETF with Plus500, can be a
trader’s first steps in this exciting space.
By providing opportunities for traders to gain
exposure to emerging technology trends like metaverse, Plus500 further expands
its horizons and fulfills its promise to build new trading products for
customers each year. In 2021, the company launched Plus500 Invest, a new share
dealing platform, which allows traders to trade in a wide range of assets,
including ETFs listed on major exchanges. Through this platform, traders can
invest in major companies worldwide that will delve into the Metaverse.
It is this focus on technological innovation
and client success that led to the company delivering outstanding operational
and financial results through FY 2021. Plus500 recorded annual revenue of approximately