(Bloomberg) — Over the past 12 months, ETF issuers have seized everything from bitcoin futures to blockchain, NFTs, and more, tapping into the DeFi boom. It’s only been a while since it came to web3.
In the latest iteration of money managers looking to leverage crypto, Simplify Asset Management filed an application to launch the Simplify Volt Web 3 ETF, which will trade under the ticker WIII.
According to a filing, WIII will invest up to 10% of its total assets in the Grayscale Bitcoin Trust (GBTC) and will also use an options strategy to hedge against risks. It carries a management fee of 0.95%.
“This filing shows that we are still in a bull market for the Blockchain/Crypto Thematic Equity Fund launch,” said James Seifert, analyst at Bloomberg Intelligence.
ETF issuers are excited about the trends emerging from the crypto world and many are looking to capitalize on the boom. Roundhill Ball Metaverse (META) has grown to nearly $950 million in assets under management since its June launch, and ProShares recently filed its application for a similar product. Meanwhile, the Defense ETF introduced one centered around non-fungible tokens, or NFTs.
Read more: Web3 is the Crypto World Trying to Restart the Internet
Web3 was born out of the idea that the sole purpose of crypto is not just to send money from person to person – there are other uses as well, including creating a new internet. A simple explanation puts it this way: The term Web 1.0 generally describes everything from the early interconnection of computer networks; In the next phase, Web 2.0 companies built applications on top of it, from social media to search engines to wikis; Web3 aims to create software and platforms that do not rely on traditional companies and advertising like the Web 2.0 business-model.
In terms of WIII, “it seems, based on the filing, that it will invest alongside Metaverse-focused ETFs with some overlap,” Seifert said. “We can’t know for sure until its launch and we can see the holdings of an actively managed fund.”
– With the assistance of Emily Graffio.