Metaverse Index - November Rebalance

Objective of the Metaverse Index (MVI):

MVI is designed to capture the trend of entertainment, social activity and business moving to take place in virtual economies, powered by NFTs and blockchain technology. MVI uses a combination of the square root of market cap and liquidity weighting to arrive at the final index weights.

MVI Rebalance Weights:

Weights were calculated as of November 30th 2021:

Here’s the change in allocations with “current” allocation taken at the time of writing.

Rebalance summary:

The above weights were calculated with some differences to the normal procedure, as we continued to see heightened volatility across the Metaverse tokens. Like last month, we used spot liquidity as well as the end of the month market cap numbers to arrive at final weights. These changes had a relatively minimal impact on the portfolio composition and we are considering incorporating them into the methodology.

We continue to work with the Product team to optimise rebalances and strike a balance between impact to NAV and gas costs. There is also a token split for $DG which might necessitate a migration prior to the actual rebalance.

As for composition, there are no additions or removals this month. We continue to monitor the space, and many interesting projects qualify for inclusion. However, liquidity is a challenge, and the rebalancing economics are forcing us to increase the liquidity threshold for inclusions.

We have also published our monthly portfolio update covering November for those looking for more information / colour.