South Korea’s Metaverse ETFs Are Rising
Written by Fiona FLast updated: As the metaverse ETFs are booming in South Korea, the increase of income is inevitable. In South Korea, local and foreign investors account for about 70% of the income.
Metaverse ETFs in South Korea
Metaverse Exchange Traded Fund (ETF) is a future Internet replication, which is in great demand in South Korea. Business investors in technology and other industries are looking at this possible “Internet successor”. Meta space is a 3D digital concept that allows users to obtain several opportunities. It provides virtual experience for players of online games such as fortress night, pearl abyss and minecraft. At the same time, it also helps users contact friends, carry out business activities, and so on. It is a digital platform focusing on virtual and augmented reality, which is related to the present and future years.
The launch of metaverse ETFs in Korea is the first time in Asia. The launch generated about $100 million in revenue. Since then, there have been eight metaverse ETFs in South Korea, with an income of US $800 billion. According to the data report of Samsung asset management, US $800 million has been invested in metaverse, a South Korean fund. The Korean government has also invested more than $338 million in more metaverse ETFs, such as Kodex k-metaverse active, HANARO FN k-metaverse MZ, kbstar Iselect metaverse and tiger FN metaverse.
In addition to technology companies and electronic chip manufacturers, ETF’s main investors are stocks related to the Korean entertainment industry. It is expected that Korean pop music will become the root of the popularity of veteran ETF in Korea. This is because metauniverse serves users of headphones, smartphones and digital glasses. For example, both IOS and Android devices have meta space. Most of these device users constitute the broad audience of k-stream industry. In addition, Kodex k-metaverse also includes shares in hybe, the owner of the music tag of BTS, the popular K-pop group.
Impact of Metaverse ETFs on Korean Income
With the rise of metadata ETFs in South Korea, the increase of revenue is inevitable. Local and foreign investors account for about 70% of the income in South Korea.
Sharma from INDXX said: “in South Korea, metaverse is touted as one of the most watched key topics in 2021,… These high capital flow figures represent a generally positive outlook for the theme of metaverse.”
The demand of retail investors in the Asia Pacific region is rising every day. In the next five years, possible capital inflows may range from $1.5 trillion to $5 trillion. Since October, retail investors in Australia have accounted for 33% of investors. These investments have been driving the widespread growth of more ETFs.
In the United States, institutional investors are playing a leading role. They have acquired most ETFs owned by the United States. According to the records of Citibank (NYSE: C), they currently own 40% of ETFs, while retail investors own 38.5%. Also in trading activities, institutional investors have surpassed retail investors in the United States and Asia. Compared with Chinese and American retailers, Chinese activities account for 60% of the total transaction volume, while American retailers account for just over 7%.
