top of page

Institutions flock to metaverse projects

GB Market Commentary 23/08/2022

by Marcus Sotiriou


Bitcoin is consolidating around $21,300 whilst digital asset management firm, CoinShares, reported outflows for crypto focused funds for the second week in a row. As trading volume dropped to $1 billion, the second lowest this year, crypto funds saw minor outflows of $9 million. Despite Bitcoin and the general crypto ecosystem seeing crypto fund outflows, Ethereum (ETH) actually saw inflows of $2.9 million. This is a result of rising optimism leading up to Ethereum’s transition to Proof of Stake, which is the biggest talking point within the whole crypto space currently.

Weekly Crypto Asset Flows - 23/08/22

Whilst CoinShares shows outflows for crypto funds, Glassnode shows heavy accumulation from address balances that have less than 1 Bitcoin. This shows that there is a juxtaposition between institutional and retail demand for crypto currently, which is conflicting with previous downtrends where balances less than 1 Bitcoin have typically declined. This potentially shows how this downtrend was driven by institutions who have been caught offside, whilst retail have generally been HODLing and accumulating.

Bitcoin: Number of Addresses with Balance - 23/08/22

Institutional interest in private markets, however, continues to grow. Invesco, an investment management giant, has launched a metaverse fund that will invest in a myriad of startups. According to a report published yesterday, these startups will include small, medium, and large-cap companies worldwide that are dedicated to metaverse technologies like virtual worlds, non-fungible tokens (NFTs), augmented reality, play-to-earn (P2E) gaming, and artificial intelligence (AI). Invesco’s fund manager, Tony Robers, explained, “we will seek to capitalise on these opportunities through a highly selective, valuation-conscious approach.”


Furthermore, a metaverse project, called Ready Player Me, has raised $56 million in a Series B funding round amid the crypto funding slump. Ready Player Me is a platform that allows people to create virtual avatars that can be used across the metaverse.


Investors include Konvoy Ventures, Collab Currency, Taavet Hinrikus and Sten Tamkivi's Plural Platform and comedian Kevin Hart's Hartbeat Ventures, with Andreessen Horowitz (a16z) leading the round.


The likes of Invesco and other established investment firms developing metaverse funds follows a range of companies entering the metaverse this year, including Samsung. I think this significant introduction of new capital will mean that when the next bull market ignites, metaverse projects will be a key trend for investors to benefit from.

Comentarios


GB_CC_May_Digital Asset Trading_Whiteout
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • telegram logo

GlobalBlock EU ApS is a company incorporated and registered in accordance with the applicable laws of the Kingdom of Denmark as virtual asset service provider, with registration number (CVR-number) 45126382. GlobalBlock EU ApS is wholly owned by GlobalBlock Holdings., a company registered in England and Wales with registration number 15929099 . GlobalBlock EU ApS is not a licensed financial services provider and is not supervised as such by the Danish Financial Supervisory Authority. GlobalBlock EU ApS is supervised with respect to anti money laundering by the Danish Financial Supervisory Authority within the scope of the Danish Act on Prevention of Money Laundering and Terrorist Financing and other legislation stemming thereof.

.
GlobalBlock Europe, UAB is a company incorporated and registered in accordance with the applicable laws of the Republic of Lithuania as a virtual currency depository wallet operator and virtual currency exchange operator, with registration number 306045642. GlobalBlock Europe, UAB is wholly owned by GlobalBlock Holdings Ltd., a company registered in England and Wales with registration number 15929099,  GlobalBlock Europe, UAB is not a licensed financial services provider and is not supervised by the Bank of Lithuania. GlobalBlock Europe, UAB is supervised by the Financial Crime Investigation Service under the Ministry of Interior of the Republic of Lithuania within the scope of the Law on Prevention of Money Laundering and Terrorist Financing of the Republic of Lithuania and other legislation stemming thereof.
 
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to the capital investment. The information in this website is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of GlobalBlock Europe, UAB based on the legal requirements in your country of residence. The information in this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.


 Client fiat is held with GlobalBlock in accounts with BCB Limited,and does not meet the definition of Electronic Money (e-money). Client fiat and cryptocurrency are not “safeguarded” nor covered by any compensation scheme. Clients could potentially lose their cryptocurrency or fiat if something were to happen to GlobalBlock or, BCB.

Cryptoasset Notice

Cryptoasset services are provided by GlobalBlock Europe, UAB (“GlobalBlock”).   Cryptoassets are not regulated in any jurisdiction and the value of your assets can increase or decrease. You should note that your cryptoasset profits may be subject to Capital Gains Tax.

The service you obtain through the website or the app in the UK, contains cryptoasrvices not regulated by the Financial Conduct Authority. Please be aware that:

  • You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to cryptoasset services.

  • Your cryptoasset account is not protected by the Financial Services Compensation Scheme.

  • Cryptoassets may experience frequent price volatility resulting in a high degree of risk.

bottom of page