Industry Updates

HANetf consolidates blockchain and metaverse ETFs

KOIN will merge into METR

Lauren Gibbons

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HANetf is planning to merge its blockchain equity ETF into its global metaverse ETF as part of ongoing efforts to restructure its product range amid low demand.

In a shareholder notice, the white label provider said the $4.7m ETC Group Digital Assets and Blockchain Equity UCITS ETF (KOIN) will merge into the $8.3m ETC Group Global Metaverse UCITS ETF (METR).

The merger, subject to shareholder approval, will take place on 14 March and comes after KOIN struggled to accrue assets since its launch.

“Since its inception in October 2021, the merging fund has failed to gather sufficient assets and an improvement is not expected in the short to medium term,” the group said.

“Hence, it is no longer viable to maintain the merging fund and a decision has been made to merge it with the receiving fund. The directors believe that a merger with the receiving fund provides investors with a viable alternative.”

The move comes after HANetf merged three thematic ETFs into two of its existing products last month.

The reshuffle saw the $7.1m Solar Energy UCITS ETF (TANN) and the $3.4m S&P Global Clean Energy Select HANzero UCITS ETF (ZERO) merge into the iClima Global Decarbonisation Enablers UCITS ETF (CLMA) while the $11.5m Procure Space UCITS ETF (YODA) consolidated into the recently launched Future of Defence UCITS ETF (NATO).

HANetf closed five ETFs last year on low demand including the FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF (FMQQ).

KOIN was among the top performing ETFs of 2023, but has since posted year-to-date returns of -18.9% due to its strong correlation to cryptocurrencies.

Meanwhile, METR has posted returns of -2.83% so far in 2024. The ETF – the first to launch in Europe – tracks the Solactive ETC Group Global Metaverse index which offers exposure to 49 companies active in the metaverse industry.

This includes areas such as VR/AR, 3D graphics, semiconductors, wireless communications, online gaming, video streaming, blockchain technologies including NFTs and connected cloud and data storage.

Elsewhere, Roundhill Investments announced the closure of its metaverse ETF last October after gathering just €1.7m assets under management (AUM) since inception.

Other mergers from HANetf came last September when it agreed a deal with Legal and General Investment Management (LGIM) to merge the $37m L&G US Energy Infrastructure MLP UCITS ETF (MLPX) with the $19.5m Alerian Midstream Energy Dividend UCITS ETF (MMLP).

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