BlackRock, the world’s largest asset manager, with approximately $10 trillion USD in assets under management (AUM), has recently announced the launch of a new Metaverse-themed exchange-traded fund (ETF) offering.

However, when taking a closer look at its top five holdings, the fund, iShares Future Metaverse Tech and Communications ETF (IVRS), is made up of Meta, Apple, Nvidia, Netease, and Roblox.

In other words, it would seem the investment giant is betting on historical players to lead the advancement of the Metaverse, with no direct investment in emerging Web3 native companies.

This begs the question, are they missing the mark, and is this “Metaverse” ETF just a clever use of a buzzword to sell a standard tech-based offering? While it is ultimately up to the investor to decide, some might argue that investing directly into source assets like Metaverse tokens and land might be a more profitable play — though it does depend on investment goals and timeline.

The choice of Meta as a top investment for the $5 million USD fund is also questionable, considering the company booked massive losses to the tune of $14 billion USD in 2022, largely due to its failed rebranding efforts and  Facebook Reality Labs (FRL) division.

On its website, BlackRock shares that the new ETF “seeks to track the investment results of an index composed of U.S. and non-U.S. companies that provide products and services that are expected to contribute to the metaverse in areas including virtual platforms, social media, gaming, 3D software, digital assets, and virtual and augmented reality.”

Though, based on its top holdings, it would seem the primary focus is on VR and AR programs and hardware — with digital assets appearing to currently be a secondary thought. That being said, many of the companies listed have explored or are currently exploring the use of crypto and blockchain-based technology in their own offerings.

In other news, could Solana’s decision to shut down physical storefronts be for the best?