European metaverse funds are seeing an unprecedented surge in assets due to the growing hype surrounding AI stocks.
The recent interest in AI and the resulting boom in tech stocks has benefited asset management groups such as Amundi and Invesco. As a result, assets under management by European funds focused on the metaverse reached an all-time high.
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Exclusive data provided by Morningstar financial news The European Metaverse Fund's total assets at the end of March were $1.1 billion, more than double the $403 million it managed the previous year.
#AI Hype drives the EU #metaverse Fund assets exceed $1 billionhttps://t.co/i0KvDJIPZn
— Metaverse Rooms (@metaverserooms_) April 12, 2024
Rapid increase in EU metaverse assets
MSCI Digital Economy and Amundi with $205 million in assets. metaverse The ESG Screening ETF is the largest fund of its kind in Europe, according to Morningstar. The fund's assets have increased by 85% since the end of 2022. Among his biggest holdings are Nvidia and Alphabet.
Meanwhile, Invesco's Metaverse and A.I. The fund with the highest exposure to Microsoft and Meta Platforms has increased more than 260% to $180.2 million in the past 12 months.
Tony Roberts, co-manager of Invesco Funds, said AI is driving capital flows. He added that AI is likely driving the development and proliferation of the metaverse.
According to Vincent Denoise, head of investment strategy at Amundi ETF, the increase in assets of the Metaverse fund reflects investors' growing confidence in the digital economy and the Metaverse as a crucial element of the future economic landscape. That's what it means.
Among the Magnificent Seven stocks that dominated the S&P 500 with an annual return of 24% last year are: Nvidiaalphabet, microsoft, Metaplatform. Nvidia's stock price alone rose more than 230% last year and is up nearly 80% so far in 2024.
Investor interest remains elevated, even as a surge in tech stocks pushes investors to invest in companies deemed important to the metaverse.
Over $184 million in new capital
From January to March this year, European Metaverse funds raised $184 million in new capital, up from $38.6 million in the same period in 2022, Morningstar reported.
Kenneth Lamont, Senior Research Analyst, said: Luciferno other theme has seen so many funds launched so quickly because fund providers failed to get to market first.
Lamont noted that while there was “increased interest” in the Metaverse theme from investors, inflows remained modest.
According to Lamont, Facebook's rebranding meta The second half of 2021 saw the hype peak. But even with the launch of many recently established funds, investors began to look elsewhere as the news flow began to change. Most of the funds did not bring in significant inflows.
Introduced in 2022, the Franklin Templeton, Fidelity International, Legal & General Investment Management Metaverse Fund is one of the smallest funds in Europe, with assets ranging from $3.8 million to $7.4 million. It can be counted as.
Additionally, Dina Ting, head of global index portfolio management at Franklin Templeton ETF, said: metaverse This location at the intersection of blockchain technology and AI continues to create attractive long-term opportunities.
