Invest in the future of the internet: First Web3 ETF is on the way
A new exchange-traded fund focused on Web3 is coming. On Wendsday, Simplify Asset Management filed an application to launch Simplify Volt Web3 ETF, which would trade under the ticker WIII.
In the past 12 months, ETF issuers have seized on everything from Bitcoin futures, to blockchain, to NFTs and more to tap into the DeFi boom. It was only a matter of time before they got to Web3.
According to Bloomberg, Web3 was born of the idea that crypto's sole purpose isn't to just send money around from person to person -- there are other utilizations, including building out a whole new internet.
A simplified explanation puts it like this: The term Web 1.0 generally describes everything from the earliest interconnection of computer networks; in the next phase, Web 2.0 companies built applications on top of that, from social media to search engines to wikis; Web3 aims to create software and platforms that aren't dependent on traditional companies and Web 2.0 business-models such as advertising.
The ETF will consist of holdings that are believed to benefit from the development and creation of Web3.
Moreover, the ETF will not directly invest in crypto assets like Bitcoin or Ethereum, but as stated in the prospectus: "The fund invests up to 10% of its total assetsin the $Grayscale Bitcoin Trust(GBTC.US$.” According to the filing, up to 20% of the fund's assets are subject to an option overlay to hedge against significant market declines.
This filing shows we're still in a bull market for blockchain/crypto thematic equity fund launches."
--- said James Seyffart, analyst at Bloomberg Intelligence.
--- said James Seyffart, analyst at Bloomberg Intelligence.
The actively managed ETF will also come with a 0.95% expense ratio.
Watch the video from Bloomberg: How NFTs are reinventing the digital world
ETF issuers have been enthusiastic about trends that have emanated from the crypto world and many are looking to capitalize on the boom. The $ROUNDHILL BALL METAVERSE ETF(META.US$ has swelled to roughly $950 million assets under management since its June launch, and ProShares recently its own application for a similar product.
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Are you interested in Web3?
Do you think Web3 will become a real thing or just a buzzword?![]()
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Do you think Web3 will become a real thing or just a buzzword?
Source: Bloomberg, Seeking Alpha
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Syuee : Whether Web3.0 is just another buzzword or a true technological trend, there is definitely a lot of money and tech behind it.
Yet there are clearly still substantial obstacles and challenges ahead… Which only time will tell, if Web3.0 can overcome them and live up to the latest hype cycle?
For now, it remains highly abstract and speculative.
Jollymoney John : Hello beautiful
Nicholas Rosales : hi
wheel snipe celly :
DreamOfStuff : Since it is an ETF, it is best to wait and see. If ETFs become too speculative, they lose the function of a "safe asset."
JG626 Syuee: you stating facts
Jonathan Grant :
What is Web3(Web 3.0