metaverseThe idea of an immersive version of the internet that combines technologies like virtual reality and NFT, has become one of the hottest topics in the crypto and blockchain industry in recent months. Citibank recently released a report that estimated the total target market focused on the Metaverse to be between 8-13 trillion dollars by 2030.
However, direct opportunities for future-oriented investors to gain exposure to this growing industry have been limited.
Now one of the oldest providers of exchange-traded products (ETP) in cryptocurrency wants to bridge that gap. 21Shares, a Switzerland-based ETP issuer that is launching the company’s 30th product, a single-origin ETP based on SAND, the original token of the metaverse project The Sandbox.
Sandbox is a virtual world similar to the blockchain-based Second Life world where users can interact with businesses and with each other. It has registered partners in quick succession, such as Adidas, Care Bears, and Snoop Dogg.
Snyder says the offer comes in response to growing customer demand for opportunities to expand beyond more popular and larger assets like Bitcoin and Ethereum, as well as her conviction that the industry has reached an important turning point in its development.
“The conversation really shifted from ‘Will Bitcoin exist in three years? ” The crypto ecosystem will look like in three years? And that means the kinds of discussions we have with institutional clients are more complex…and metaverses are one of the things that you start to see real themes coming up in cryptography,” Snyder says.
SAND is the best performing metaverse token in the past six months, giving 328 percent of the return to investors. However, SAND has underperformed competitors such as Decentraland (MANA)and Axie Infinity (AXS) and Enjin (ENJ) this year as part of a downward trend that began in December of last year and affected the entire industry. The drop also coincides with a decline in interest in metaverse searches in general, suggesting that the big hype cycle that began when Facebook changed its name to Meta in October of last year may have a break. However, Snyder is betting that this regression will be far into the history of the larger metaverse.
Sandbox isn’t 21Share’s first metaverse product. The company launched a product focused on MANA in February of this year, which currently stands at just over $1 million. This would make it about 50 times less than the Grayscale Decentraland Trust, a closed-end fund offered by Grayscale, available only to accredited US investors and institutions and available since February 2021.
Conversely, 21Shares products are freely traded on many European exchanges, but are largely unavailable to US investors until the Securities and Exchange Commission begins approving spot ETFs. So far, only a handful of Bitcoin futures ETFs have been approved by the regulator.
SHOP SAND ETP
21Shares The Sandbox ETP Today it is traded on Euronext and BX Swiss. Euronext is the acronym as andwhile at BX Swiss it is so sand.
Euronext is a marketplace that a few Swedish banks and online brokers provide access to Dejero Do it.