Metaverse Profits Aren’t Just For Crypto Investors

The metaverse isn’t just a popular buzzword but a very real, burgeoning market with real investment opportunities.

The general idea? It’s a version of the internet, but immersive: You live inside it and interact with it.

In the metaverse, you’ll have experiences with art, shopping, social networks, fitness and even health. It could integrate artificial intelligence (AI), virtual reality (VR), augmented reality (AR), blockchain technology and concepts from social media to mimic the real world.

And the best part:

• You don’t have to be a crypto investor to profit from the metaverse!

This week, Financial News Anchor Jessica Borg spoke with Research Analyst Sam Blumenfeld about the limitless opportunities in the new metaverse landscape.

You can watch the video segment or continue reading for the full transcript.

Jessica Borg (narration): It’s one of the hottest trends in investing and yes, it’s going mainstream … the metaverse!

The idea is it's a version of the internet, but immersive — so you live inside it, interact with it, and have experiences with art, shopping, social networks, even health.

It’s a simulated digital environment that can combine artificial intelligence (AI), virtual reality (VR), augmented reality (AR), blockchain and concepts from social media to mimic the real world.

Sam Blumenfeld: The metaverse is essentially an online virtual platform with interoperability, where human interactions shift from in-person to digital.

JB (narration): Research Analyst Sam Blumenfeld says we are years away from a singular metaverse, but there’s a bunch of platforms already in the game, banking that it’s the future.

JB: Many companies are looking to become metaverse-oriented.

SB: We’re already seeing companies create their own preliminary versions of their own metaverses, where they have their own online platforms, digital goods, and people are getting together online.

JB (narration): That means opportunities for investors.

Money is pouring into metaverse-related crypto projects, but even if you’ve never invested in crypto, you can capitalize on the companies developing these platforms.

SB: Crypto will play a significant role in the metaverse, but it won’t be the entirety because traditional corporations will look to capture their market share, too.

JB (narration): There are early adopters in the space that are constantly evolving.

SB: We’ve seen companies like Epic Games with “Fortnite” releasing accessories for avatars where people can purchase anything to make their appearance different.

We’ve seen platforms like Roblox (NYSE: RBLX) where people are spending on their digital appearance and avatars.

JB (narration): Roblox is an online gaming and entertainment platform.

It also offers tools for developers to create and operate their own 3D content.

The company even has its own currency, “Robux.” Popular brands are now jumping on to reach a wider audience.

SB: We’ve seen key partnerships within Roblox’s platform, with companies like Gucci and Nike (NYSE: NKE) releasing digital products and partnering on that platform, specifically.

JB (narration): Other corporate giants are looking to dominate the new space.

SB: We’ve seen companies like Facebook re-brand to Meta Platforms (Nasdaq: FB) to try to pivot to capitalize on the shift to online interactions.

Square, the payment processing company, rebranded to Block (NYSE: SQ) to capitalize on blockchain technology and payment processing within an online setting.

And we’ve also seen Microsoft (Nasdaq: MSFT) acquire Activision Blizzard (Nasdaq: ATVI) to get a leg up in the content department, for when it looks to cement its place in the metaverse.

There are lots of companies looking to establish themselves as market leaders in the space.

JB: There’s a lot hinging on the expected growth in this realm.

SB: Grayscale Investments says it sees the metaverse — the industry, itself — becoming a trillion-dollar market opportunity.

JB (narration): Take a look at how the market breaks down in segments.

SB: There’s a wide variety of opportunities in the metaverse, with hardware, software, infrastructure, payment processing, content creation and advertising.

You can just see a lot of different companies look to establish themselves into their own niche.

JB (narration): You can gain exposure to the space through an exchange-traded fund (ETF).

SB: The Roundhill Ball Metaverse ETF (NYSE Arca: META) was the first and most established ETF covering an index with companies that are looking to expand their role and grow through metaverse interactions.

JB (narration): Sam works closely with Sean Brodrick on his publications, including Wealth Megatrends.

He’s also a contributor to Weiss Crypto Daily, focusing on Bitcoin’s (BTC) weekly performance.

He sees great profit potential in the metaverse landscape, long-term, and says increased adoption is inevitable.

SB: The long-term growth prospects are extremely strong, but at least over the short to medium term — with higher inflation and growth stocks hurt by worsening sentiment — they could face a bit of short-term weakness before the long-term growth could potentially take over.

Overall, the long-term growth prospects of the metaverse are strong.

JB (narration): Because the “reality” is forms of simulated reality are here to stay … so, take advantage in your portfolio.

JB: Research Analyst Sam Blumenfeld, thank you for your insights today.

SB: Thanks for having me, Jessica.

Best wishes,

The Weiss Ratings Team