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BlackRock Sees Opportunities in the Metaverse


One of the hottest topics in the world of technology in the past few years has been the Metaverse — a virtual world where people from all over can interact. While there remain serious questions about how exactly people are going to use the Metaverse, financial services firm BlackRock thinks that there are serious opportunities for investors to get into the Metaverse and start making money now.

For help with investing in the Metaverse or with more general investment advice, consider working with a financial advisor.

Metaverse Basics

The term “Metaverse” actually originated in science fiction, appearing first in the novel “Snow Crash” by Neal Stephenson in 1992. The concept was then used by Mark Zuckerberg when he rebranded his company — which still owns and operates Facebook — as “Meta.”

The Metaverse is a virtual reality that can be accessed through myriad platforms including laptops, smartphones and, most notably, VR headsets. Once inside the Metaverse, you can talk to people, attend virtual meetings and even see virtual performances.

Metaverse Investing

There are a number of ways to invest in the Metaverse. The simplest is to invest directly in Meta, the company formerly known as Facebook which operates a Metaverse. You can also invest in other companies entering the virtual reality space — though Meta has the name, there are certainly other tech companies trying to establish virtual worlds for users to interact in.

Another option is investing in hardware companies that make products people use to access the Metaverse, such as VR headsets and computers designed for Metaverse use.

BlackRock’s Analysis

blackrock metaverse investing

BlackRock presents data showing that the term “Metaverse” is being used much more often in company transcripts, pushing into the conversation with other tech hot topics like e-Sports, virtual reality and 5G. This, BlackRock posits, is a sign of mass adoption and could portend big changes to how people work and play moving forward. Reid Menge, part of BlackRock’s technology equity team, published a note saying that “at this juncture, it is much like the internet of the early 1990s or the smartphone of the early 2000s: We expect it is going to be big, and very likely change people’s daily lives. But we don’t yet know exactly how, or how big the shift will be.”

The biggest investment opportunity, per BlackRock, is going to be in companies that can provide consumers and other companies with quality hardware for accessing the Metaverse, namely AR glasses: “Producing AR glasses that are wearable, fashionable and Metaverse-functional will require a new generation of chips, batteries and lenses.” The companies that will build out the actual Metaverse also figure to be good investment opportunities, per BlackRock.

The Bottom Line

The Metaverse is a new technology allowing people from all over the world to interaction virtual reality. BlackRock believes that it is about to seriously change the way people live their lives, and that there are strong investment opportunities available, especially in companies that make hardware for accessing the Metaverse.

Investing Tips

  • A financial advisor can help you make smart investments in new technology. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you don’t want to invest in individual companies, consider looking for a mutual fund or exchange-traded fund that focuses on new technologies.

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