RIO DE JANEIRO, BRAZIL – Just a few days after Vectis Group sold Brazilian investment house Vitreo to São Paulo-based BTG Pactual, one of Latin America’s largest investment banks, Vitreo came up with an absolute novelty for the Brazilian market.
Vitreo has announced the launch of a fund investing in metaverse companies and cryptocurrencies approved by the Securities and Exchange Commission (CVM).
Called “Vitreo Metaverse Shares FIA BDR Level I”, it is aimed at the general public and has an initial minimum investment of R$1,000 (US$180)
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The base structure of ‘Metaverso Ações’ is a BDR stock fund, with a composition of up to 20% in foreign stocks and the rest in BDRs issued in Brazil, as determined by the CVM.
Companies such as Unity, AMD, Nvidia, Roblox, and Meta itself (former Facebook) compose the product’s portfolio, whose structuring is based on Empiricus’ Meta Rider thesis, from analysts Enzo Pacheco, João Piccioni, and Richard Camargo.
In addition, the fund invests up to 10% in a portfolio of cryptocurrencies related to NFTs and play-to-earn games. According to Jojo Wachsmann, CIO of Vitreo, the fund’s outlook is quite positive.
“While rising US inflation and interest rates may seem like a threat, the idea is to invest in companies that are working towards building this new reality,” he says.
The metaverse requires hardware, software, and infrastructure investments at three levels. And for all of them, the cost involved in billions of dollars.
“This virtual reality calls for the development of sensors, lenses, speakers, processor design, data centers, complex applications, and so many other applications,” Jojo recalls.
Vitreo’s new fund has currency exposure, classifying it as an alternative for those seeking portfolio diversification. The administration fee is 0.9% per year; the performance fee is 10% over the S&P500 Total Return.
FIRST DEFI FUND
Vitreo is trying to make its mark in Brazil with investment innovations. In April 2021 it announced as a first in Brazil to launch its DeFi (decentralized finance) fund.
In its most simple form, decentralized finance is a concept where financial products are available on a public decentralized blockchain network, making them open to anyone to use rather than going through an intermediary like banks or brokerage.