Trading the Future: What is the Metaverse and How to Trade it

FinanceFeeds Editorial Team

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.

Metaverse 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.

Metaverse 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.

Trading 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 limit risk. 

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.

What 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 $718 million. 

Read this next

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

<