The Roundhill Ball Metaverse ETF (METV) returned 26.24% in 2Q’25, its strongest quarter since 1Q’23. As of July 21, the fund is trading at all-time highs and is outperforming the S&P 500 index by roughly 22% year-to-date. In our view, METV still offers upside potential, supported by constructive market sentiment, favorable trendwork, and evolving fundamental catalysts. This is what we’re seeing.
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call (855) 561-5728. For more information, including current holdings and standardized performance: https://www.roundhillinvestments.com/etf/metv/
Metaverse - An Uncrowded Trade
Late-2021 was a euphoric time with lofty expectations for the Metaverse. 2022’s equity bear market coupled with rising interest rates served as a harsh wake-up call not only for metaverse stocks, but for the Technology sector broadly. Consequently, sentiment for the Metaverse came off the boil in a hurry and has not really recovered. Mentions of the “metaverse” in Bloomberg stories have fallen 97% from almost 14,000 mentions the week of November 19, 2021 to just 462 mentions the week of July 18th. This has led to a massive divergence from the price action of METV, which is now at all-time highs. Investing in the Metaverse can no longer be perceived as a crowded trade.
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call (855) 561-5728. For more information, including current holdings and standardized performance: https://www.roundhillinvestments.com/etf/metv/
ETH & SOL Rallying
Ethereum (ETH) and Solana (SOL) provide the blockchain “plumbing” that lets Metaverse platforms handle digital ownership, persistent identity, and in‑world commerce, warranting roughly 15% of the METV portfolio combined. Since April 7, Ether has surged more than 139% and Solana nearly 81%, recently reinforced by Washington’s friendlier tone. The green light of spot Ether ETFs and a surge of pro‑crypto bills such as the CLARITY Act signal a markedly more accommodative U.S. regulatory backdrop.
Past performance is no guarantee of future results. Ether performance is measured using the XETUSD Curncy data on Bloomberg. Solana performance is measured using the XSOUSD Curncy data on Bloomberg.
Broad Advance Within METV
Roblox Corp (RBLX) is widely considered the leader within the Metaverse space and is the largest weight in METV’s portfolio. As the fund’s largest holding, it boasts the second best performance in 2025 year-to-date with an ~111% return. More broadly, the top 10 weights in METV have averaged a 35.5% YTD return through June 21st. The Metaverse theme is experiencing broad participation and is an encouraging sign for a durable, healthy advance.
Past performance is no guarantee of future results. For a full list of holdings, please go to https://www.roundhillinvestments.com/etf/metv/
Real and Virtual Worlds Collide
Whether you caught it on Reddit or during prime‑time TV, Chris Hemsworth and Chris Pratt are fronting a major campaign for Ray‑Ban Meta smart glasses after EssilorLuxottica extended its partnership with Meta through 2030. Since the product’s October 2023 debut, more than two million pairs have been sold, according to The Verge. Meta has capitalized on the buzz with limited‑edition drops and heavy spending, positioning the glasses as a mainstream gateway to the Metaverse. For investors, that rapid adoption curve—and the scale of Meta’s spend—suggest spatial computing is shifting from novelty to a potentially meaningful revenue stream.
What’s Next for the Metaverse?
Legislative tailwinds are accelerating: the bipartisan GENIUS Act — the nation’s first federal stable‑coin statute — was signed into law on July 18, while the CLARITY Act cleared the House and now moves to the Senate. Together, these moves sharply raise the odds that the United States will soon adopt a comprehensive federal crypto framework. In our view, this would be a clear positive for the blockchains underpinning METV’s exposure, notably Ethereum and Solana. As that policy clarity advances, Q2 earnings season is shifting into high gear. Investors will drill into Roblox’s July 31 report for daily‑active‑user trends and time‑spent metrics, while Meta’s July 30 release should shed light on engagement across its platforms and the trajectory of Reality Labs spend.
Over the course of three months, METV has surged from the early April tariff lows and is now trading at all-time highs. The fund is benefitting from impressive price momentum in a strong uptrend with broad participation from a majority of its holdings. A maturing regulatory backdrop for crypto paired with fresh earnings reports could keep the metaverse tailwinds at its back for the quarter ahead.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the METV ETF please call 1-855-561-5728 or visit the website at https://www.roundhillinvestments.com/etf/METV. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Metaverse Companies and other companies that rely heavily on technology are particularly vulnerable to research and development costs, substantial capital requirements, product and services obsolescence, government regulation, and domestic and international competition, including competition from foreign competitors with lower production costs. Stocks of such companies, especially smaller, less-seasoned companies, may be more volatile than the overall market. Metaverse Companies may face dramatic and unpredictable changes in growth rates. Metaverse Companies may be targets of hacking and theft of proprietary or consumer information or disruptions in service, which could have a material adverse effect on their businesses. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks.
As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Due to the costs of buying or selling Shares, including brokerage commissions imposed by brokers and bid/ask spreads, frequent trading of Shares may significantly reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments. The Fund may invest in securities issued in initial public offerings. The market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading and limited information about the issuer. The purchase of IPO shares may involve high transaction costs. IPO shares are subject to market risk and liquidity risk. The Fund is a recently organized investment company with no operating history. The Fund invests in equity securities of SPACs, which raise assets to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. Because SPACs have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable acquisition. There is no guarantee that the SPACs in which the Fund invests will complete an acquisition or that any acquisitions that are completed will be profitable. Public stockholders of SPACs may not be afforded a meaningful opportunity to vote on a proposed initial business combination because certain stockholders, including stockholders affiliated with the management of the SPAC, may have sufficient voting power, and a financial incentive, to approve such a transaction without support from public stockholders. As a result, a SPAC may complete a business combination even though a majority of its public stockholders do not support such a combination. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices.
Foreside Fund Services, LLC: Distributor.
*Neither Roundhill Investments nor METV ETF are affiliated with these financial services firms. Their listing should not be viewed as a recommendation or endorsement.
Glossary:
Ethereum is an open source blockchain platform that supports smart contracts and enables decentralized applications. ETH is the native token for the network and is used to pay for transaction fees. Ethereum was first described in a white paper in 2013.
Solana (SOL) is the token used to pay for transaction processing on the Solana blockchain. The Solana blockchain is a scalable technology enabling the creation of decentralized applications. It is able to process magnitudes more transactions per second than Proof of Work Blockchains by harnessing a Proof of History time stamp methodology with a Proof of Stake consensus algorithm.
