After 15 months and an approximate 30% loss, an exchange-traded fund (ETF) that opposes the metaverse perspective is going out of business.
Subversive Capital is about to close and liquidate its Subversive Metaverse ETF, known by its ticker “PUNK,” as the firm shifts its focus to artificial intelligence (AI).
In January 2022, The PUNK ETF was introduced with the goal of investing in companies that support the infrastructure and applications of the metaverse. However, Mark Zuckerberg’s Meta was conspicuously absent from the list.
In its online description of the fund, Subversive Capital highlighted the importance of responsible companies dedicated to principles such as egalitarianism, democracy, sustainability and facts for the advancement of emerging technology and humanity. The firm was of the view that Meta Platforms—Facebook’s parent company—contradicts these principles, stating that any market capitalization above zero poses a direct threat to liberal democracy and the survival of the planet.
The board of directors decided to close and liquidate the ETF with immediate effect after the close of business on May 31, 2023. The company will continue its normal operations with respect to its other exchange funds.
The investment firm joins the growing list of companies losing interest in the metaverse. The ETF was short Meta, whose shares were trading at around $300 when the fund launched. However, the value of Meta fell below $90 in November 2022 and has since rallied to around $240.
Companies the fund invested in include Alphabet, Apple, Nvidia and Microsoft, among others. Subversive’s portfolio manager, Christian Cooper, stated that they remain convinced that Meta’s priorities are misguided and have chosen to change focus due to the rapid advancement of more promising technologies such as AI.
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