SoFi, a digital financial services firm, has launched an ETF fund focussed on NFTs, blockchain technology and the metaverse. Ready to invest in 40 securities related to blockchain technology, the metaverse, artificial intelligence and big data, the SoFi Web 3 ETF (TWEB) has a 59 basis point. It tracks the SoFi Solactive ARTIS Web 3.0 Index.
According to the company, since its launch in 2021, SoFi has witnessed 500,000 people visit its “ Crypto for Beginners Guide”. The traffic of the firm has increased by 39% year over year. SoFi has also launched its Web3 educational guide alongside the ETF. During the second quarter, the company added roughly 450,000 new members taking its total count to 4.3 million, as of June 30.
Amazon, Ceva, Albert, Alphabet and Exscientia make the top holdings in the index. It is partially determined by algorithmically scanning companies’ online financial reports for relevant keywords. The fund also invests in more crypto-related firms like Galaxy Digital and Coinbase along with Bitcoin miners such as Marathon Digital Holdings, Argo blockchain, and Riot Blockchain.
Over the past year, several issuers consisting of the world’s biggest asset managers, have bought to market ETFs that invest in crypto-related stocks. In April, Fidelity released its Metaverse ETF (FMET) and Crypto Industry and Digital Payments ETF (FDIG). A week after that came the news that BlackRock has launched its blockchain technology ETF.
Last week, Charles Schwab released its first crypto ETF. The president of The ETF Store, Nate Geraci, said that this segment of ETFs is already “oversaturated. ” Last October, Exchange Traded Concepts released the Fount Metaverse ETF (MTVR). In December, Defiance ETFs launched its Digital Revolution ETF (NFTZ). NFTZ makes investments in NFT marketplaces and issuers.
As per the FactSet data, MTVR and NFTZ have published year-to-date returns of -27% and -53%, respectively. Each fund contains approx. $8 million in assets under management. As the firm continues to develop its suite of thematic products, SoFi launched the Web3 fund in tandem with a smart energy ETF. According to ETF.com, SoFi had six ETFs conducting trade in the US with combined assets under management of around $500 million.