Metaverse ETF ‘PUNK’ closing after betting against Meta’s vision

Subversive Capital cites losses as it shuts down its “PUNK” ETF and pivots to artificial intelligence.

After 15 months and an approximate 30% loss, an exchange-traded fund (ETF) opposing Meta’s perspective on the metaverse is shutting down.

Subversive Capital is set to shut down and liquidate its Subversive Metaverse ETF, known by its “PUNK,” ticker, as the company shifts its focus toward artificial intelligence (AI).

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 Meta was notably absent from the list.

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 — 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 the planet.

The board of trustees decided to close and liquidate the ETF effective immediately after the close of business on May 31, 2023. The company will continue its normal operations with regard to its other exchange funds.

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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 2022 and 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 AI.

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