Zuck got PUNKed — new Metaverse-linked ETF shorts Meta shares in holdings

Source : cointelegraph.com

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An exchange-traded fund linked to companies involved with the Metaverse launched on the Cboe BZX Exchange — shorting shares of Facebook’s parent company, Meta.

The Subversive Metaverse exchange-traded fund (ETF, listed under the ticker PUNK, opened for trading at $25.15 on Thursday. The fund’s holdings include shares of Block — formerly Square — Google’s parent company Alphabet, Microsoft, Sony, GPU manufacturer Nvidia, Coinbase Global, Galaxy Digital and online gaming platform Roblox. However, exposure to Meta — one of the largest tech firms in the world, with an $837 market capitalization — was conspicuously absent from PUNK’s top holdings.

According to a Thursday Bloomberg report, Subversive Capital Advisor founder Michael Auerbach claimed the reputation around Facebook’s parent company — purportedly based on reports the firm was not doing what it claimed in regard to removing hate speech and posts encouraging violence — made it unsuitable for the ETF. The fund takes a short position on 40 Meta shares, the only one out of the 59 companies in its holdings.

“Facebook seems to be the antithesis of what actual consumers want their digital futures to look like,” said Auerbach. “Mark [Zuckerberg] and his team are not the best custodians of our digital futures.”

Christian Cooper, the ETF’s portfolio manager, added:

“We want to make sure this industry develops, without getting “Zucked-up,” from those who see the true potential of this space.”

Related: Meta unveils metaverse AI supercomputer, claims it will be world’s fastest

At the time of publication, the Metaverse ETF is trading at $24.74, having fallen more than 2% since opening. In December, ETF-issuer ProShares announced it had applied with the U.S. Securities and Exchange Commission to list shares of a fund tracking the Solactive Metaverse Theme Index — with companies including Meta, Apple and Nvidia. However, there are also current listings for Metaverse-linked ETFs from Roundhill Ball, Evolve, Fount and Horizons across the U.S. and Canada.

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