After a slightly over 15-month duration and suffering an approximate 30% loss, an exchange-traded fund (ETF) that aimed to oppose Meta's perspective on the Metaverse is ceasing its operations.
Subversive Capital Advisor is set to shut down and liquidate its Subversive Metaverse ETF, known by the ticker symbol PUNK, as the company shifts its focus towards artificial intelligence.
In January 2022, the PUNK ETF was introduced with the objective of investing in companies that support the infrastructure and applications of the Metaverse. However, Mark Zuckerberg's company was notably absent from the list, despite the fund's name.
In its online fund description, Subversive Capital emphasized the importance of responsible companies dedicated to principles such as egalitarianism, democracy, sustainability and facts for the progress of emerging technology and humanity. The firm expressed the view that Meta Platforms Inc., the parent company of Facebook, contradicts these principles, stating that any market cap above zero poses a direct threat to liberal democracy and the survival of our planet.
After careful consideration, the Board of Trustees has decided to close and liquidate the Subversive Metaverse ETF (CBOE: PUNK) 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.
Related: Apple’s new headset could put a rocket under metaverse tokens
The investment firm joins the growing list of companies losing interest in the metaverse. The ETF took a short position on Meta, with the stock trading at approximately $300 when the fund launched. However, Meta's value dropped to under $90 in November and it has since rebounded to around $240.
Among the companies the fund invested in were 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 opted to shift focus due to the rapid progress in more promising technologies like artificial intelligence.
Magazine: Is the Metaverse really turning out like ‘Snow Crash’?