Esport is the new cool. Taking advantage of the buzz around Blockchain and ordinary video gaming, VanEck Europe has announced a thematic ETF for video games and eSport, a sub-sector which the firm says has potential with a projected multi-billion valuation in years to come.
VanEck Europe Announces Thematic ETF
VanEck is a global investment manager with offices all over the world and before withdrawing its application (in partnership with SolidX), they were active advocates for a Bitcoin Exchange-Traded Fund (ETF).
The #videogame and #esports industry has rapidly grown to become an economic powerhouse, one that appears to be here to stay. Learn more about our #EsportsInvesting #ETF strategy: https://t.co/L6VA1ImgIM pic.twitter.com/dhMHZZxo0X
— VanEck Europe (@vaneck_eu) June 15, 2020
Through a short video clip posted on Twitter on June 15, 2020, VanEck expects the industry to drawn 495 million viewers by the end of the year and 643 million by 2023.
Besides this impressive growth in number, eSports have been posting above-average gains. For instance, since 2015, the scene has registered annual yields of 23 percent, and more are expected in the coming days. By 2023, they forecast that the global gaming market will reach $200 billion.
Because of this, VanEck Europe is now rolling out a vehicle through which ordinary investors can probably profit from the future of sports.
By announcing the VanEck thematic ETF, one would confidently and legally invest in video games and eSport, a multi-billion dollar industry.
GPU Demand To Affect 1.4 B Gamers by 2021
The shift comes as no surprise.
In a recent interview, Andrew Chen of Andreessen Horowitz, a fund that has supported Ripple, CryptoKitties, Skype, and other mainstream industries, said they are now focused on blockchain gaming and video gaming.
“Blockchain gaming is very interesting too. We backed Kevin Chou’s company. We also have the CryptoKitties investment. That’s what you would need for different games to be able to interoperate with each other, something like a blockchain to intermediate it.”
“Today what I’m more interested in–the fact is, more and more people are playing games than ever. It’s a huge industry. And then just the talent level, the talent that’s spinning out of Riot Games, Valve, Blizzard, starting to spin out of Epic. The fact that you can build a game startup–I mean, Riot showed that you could build a very valuable game startup.”
In 2018, CoinGape reported that the rise of GPU crypto mining had significantly impacted gaming. The resulting demand had led to a re-pricing and scarcity. It is estimated that by 2021, 1.4 billion gamers will be affected.