As an increasing number of companies embrace the concept of the metaverse, some have taken a more critical approach. Subversive Capital Advisor, for instance, launched an exchange-traded fund (ETF) with the specific goal of opposing the metaverse strategy of Meta Platforms Inc. However, after suffering a 30% loss over a 15-month period, the company has decided to shut down and liquidate its Subversive Metaverse ETF, known by the ticker symbol PUNK.
The PUNK ETF was introduced in January 2022, aiming to invest in companies that support the infrastructure and applications of the metaverse, though notably excluding Meta from the list. Subversive Capital’s online description emphasizes responsible companies dedicated to principles like egalitarianism, democracy, sustainability, and facts for the progress of emerging technology and humanity. They argue that Meta contradicts these principles, claiming that any market cap above zero poses a direct threat to liberal democracy and the survival of the planet.
However, the Subversive Metaverse ETF will cease operations effective immediately after the close of business on May 31, 2023. Subversive Capital Advisor will continue its normal operations with regard to its other Exchange Funds. As the company shifts its focus toward artificial intelligence, it joins a growing list of organizations losing interest in the metaverse.
The PUNK ETF originally took a short position on Meta when the stock was trading at approximately $300. However, Meta’s value dropped to under $90 in November and has since rebounded to around $240. The fund’s investments included companies like Alphabet, Apple, Nvidia, and Microsoft. Subversive’s portfolio manager, Christian Cooper, stated that they remain convinced Meta’s priorities are misguided, and the decision to shift focus was due to rapid progress in more promising technologies like artificial intelligence.
But is this skepticism warranted, or is it merely a case of focusing on the wrong aspects of emerging technology? On one hand, there is the potential for misuse of the metaverse and the harmful influence of certain players. On the other, the rapid growth and technological advancements in the space could have wide-ranging benefits that might outweigh the potential risks.
As companies and investors navigate the complex environment of the metaverse, it remains essential to balance the promise of innovation with ethical and sustainable practices. The Subversive Metaverse ETF’s closure serves as a reminder of the importance of scrutinizing the motives and actions of key industry players, while also remaining receptive to the potential that emerging technology holds. The ultimate impact of the metaverse on our society will
Source: Cointelegraph
