Metaverse Investment Warning: PUNK ETF Closes After Disastrous Gamble

The NFT Unicorn 8782780f6e10ef5aeb2b8fc0662b1f576f0d46a2 Metaverse Investment Warning: PUNK ETF Closes After Disastrous Gamble Metaverse News

The ETF, which was introduced in January 2022 with the objective of investing in companies that support the infrastructure and applications of the metaverse, took a short position on Meta, with the stock trading at approximately $300 when the fund launched. However, Meta’s value dropped to under $90 in November 2022 and has since rebounded to around $240.

In a statement, Subversive Capital announced its decision to close and liquidate the ETF effective immediately after the close of business on May 31, 2023. The company will continue its normal operations with regard to its other exchange funds. The decision comes as the investment firm shifts its focus toward artificial intelligence (AI), joining the growing list of companies losing interest in the metaverse.

Despite the ETF’s objective, Mark Zuckerberg’s Meta was notably absent from the list of companies the fund invested in. In its online fund description, Subversive Capital emphasized the importance of responsible companies dedicated to principles such as egalitarianism, democracy, sustainability, and facts for the progress of emerging technology and humanity. The firm expressed the view that Meta Platforms — the parent company of Facebook — contradicts these principles, stating that any market cap above zero poses a direct threat to liberal democracy and the survival of the planet.

Subversive’s portfolio manager, Christian Cooper, stated that they remain convinced that Meta’s priorities are misguided and have opted to shift focus due to the rapid progress in more promising technologies like AI. Among the companies the fund invested in were Alphabet, Apple, Nvidia, and Microsoft — among others.

While the Subversive Metaverse ETF is shutting down, Subversive Capital will continue its operations with regard to its other exchange funds. The decision to liquidate the ETF is due to the drop in Meta’s value, as well as the investment firm’s shift of focus towards AI, which is seen as a more promising technology. Despite the ETF’s objective to invest in companies that support the metaverse, Meta was absent from the list of companies invested in due to Subversive Capital’s belief that Meta Platforms contradicts principles such as egalitarianism, democracy, sustainability, and facts for the progress of emerging technology and humanity.

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Source: Crypto News