Roundhill Ball Metaverse ETF (METV) Initiates Ether, Bitcoin Investments

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Jun 24, 2024, 08:30 ET

METV is the first U.S. listed ETF to make a substantial investment in ether*, the digital asset underlying Ethereum, a critical protocol to the development of the Metaverse.

NEW YORK, June 24, 2024 /PRNewswire/ -- Following the quarterly rebalance of the Ball Metaverse Index, the Roundhill Ball Metaverse ETF (METV) has initiated positions in ether* and bitcoin*. METV currently holds an 6.8% position in ether* and a 2.0% position in bitcoin*, expressed via the CI Galaxy Ethereum ETF and CI Galaxy Bitcoin ETF, respectively.

The fund's investment of approximately $27 million in ether* is the largest on record for a U.S. listed ETF.

"The proliferation of cryptocurrencies and protocols is an important (and to many, critical) driver behind the emergence of the Metaverse," said Matthew Ball, Founder of Ball Metaverse Research Partners. "Designed by our Expert Council of senior alumnae from worldwide leaders in cloud services, virtual reality, digital distribution, and blockchains, the Ball Metaverse Index's pioneering and proprietary methodology ensures representative exposure to this multi-trillion dollar theme. Reflecting the growing significance and adoption of crypto indicated by this methodology, we will now be adding both Ether and Bitcoin to the Index."

"Growing adoption and support for crypto will further accelerate the emergence of the metaverse. Property rights underpin prosperous economies. Blockchains are a digital property rights system for the internet — infrastructure that enables a rich Metaverse economy ripe for countless new developers, businesses and creators, while giving users true ownership over money, identity, data, digital goods and more," said Jesse Walden, Co-Founder & General Partner of Variant Fund, and Co-Founder of Ball Metaverse Research Partners and Member of its Expert Council.

According to Ball Metaverse Research Partners, we are several decades into an unstoppable trend in which more time and money is spent in an ever-growing number of virtual experiences. As these technologies continue to improve, their capabilities expand in reach and relevance. Game engines now run self-driving vehicles and factory operations. AI-powered digital twins are used to predict forest fires. Augmented headsets already enable hundreds of remote surgeries a year. The mirror worlds of the Metaverse continue to grow their appeal and impact.

*The Fund does not invest directly in ether or bitcoin. The Fund gains exposure to ether and bitcoin via publicly-listed exchange-traded-products.

About Roundhill Investments

Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Roundhill's suite of ETFs offers unique and differentiated exposures across thematic equity, options income, and trading vehicles. Roundhill offers a depth of ETF knowledge and experience, as the team has collectively launched more than 100+ ETFs including several first-to-market products.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the METV ETF please call 1-855-561-5728 or visit the website at https://www.roundhillinvestments.com/etf/METV. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Metaverse Companies and other companies that rely heavily on technology are particularly vulnerable to research and development costs, substantial capital requirements, product and services obsolescence, government regulation, and domestic and international competition, including competition from foreign competitors with lower production costs. Stocks of such companies, especially smaller, less-seasoned companies, may be more volatile than the overall market. Metaverse Companies may face dramatic and unpredictable changes in growth rates. Metaverse Companies may be targets of hacking and theft of proprietary or consumer information or disruptions in service, which could have a material adverse effect on their businesses. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks.

As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Due to the costs of buying or selling Shares, including brokerage commissions imposed by brokers and bid/ask spreads, frequent trading of Shares may significantly reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments. The Fund may invest in securities issued in initial public offerings. The market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading and limited information about the issuer. The purchase of IPO shares may involve high transaction costs. IPO shares are subject to market risk and liquidity risk. The Fund is a recently organized investment company with no operating history. The Fund invests in equity securities of SPACs, which raise assets to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. Because SPACs have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity's management to identify and complete a profitable acquisition. There is no guarantee that the SPACs in which the Fund invests will complete an acquisition or that any acquisitions that are completed will be profitable. Public stockholders of SPACs may not be afforded a meaningful opportunity to vote on a proposed initial business combination because certain stockholders, including stockholders affiliated with the management of the SPAC, may have sufficient voting power, and a financial incentive, to approve such a transaction without support from public stockholders. As a result, a SPAC may complete a business combination even though a majority of its public stockholders do not support such a combination. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices.

Foreside Fund Services, LLC: Distributor.

Glossary

Ball Metaverse Index (BALLMETA Index): The Ball Metaverse Index is designed to track one of the largest and most valuable socio-economic technological transformations of the coming decades: the Metaverse. The Index is managed by an Expert Council which maps and weights thousands of public companies to seven categories enabling Metaverse technologies and businesses, each weighted by their projected share of Metaverse-related revenues. The Roundhill Ball Metaverse ETF (METV) seeks to track the performance of the Ball Metaverse Index.

SOURCE Roundhill Investments