VanEck’s esports ETF breaks the EUR100m barrier
Around 10 months after the launch of VanEck Vectors Video Gaming and eSports UCITS ETF in Europe, the ETF has already amassed over EUR100 million. The volume shows a strong demand for innovative and future-oriented investment products – including in the context of current market volatility in the face of the coronavirus pandemic.
"The performance of our esports ETF to date shows that investments in the company, for example in software developers or streaming providers, are seen as interesting investment opportunities and a growing trend. In the light of the current coronavirus pandemic in particular, we expect significant growth in the global video and esports industry. The Steam gaming platform (which is not currently part of the portfolio) reached a record number of simultaneous users on 15 March with 20 million online and 6.2 million in-game users - and the trend is rising," says Martijn Rozemuller, Head of Europe at VanEck.
At the same time, the risks associated with investing in video game and esports companies should not be ignored: these companies are heavily dependent on patent protection and may be subject to regulatory restrictions in terms of cybersecurity and data protection.
Due to the suspension of the regular NASCAR racing series, US television station FOX Sports took the decision to broadcast a virtual eNASCAR race, attracting more than 900,000 viewers. This makes it the most-watched television event in the history of esports in the United States. FOX is committed to reporting on the rest of the digital racing season on television.
"As traditional sports leagues and tournaments look likely to remain closed for some time to come, we expect more and more traditional sports organisations such as Formula 1 to increasingly embrace the esports ecosystem," says Ed Lopez, Head of ETF Product at VanEck.
Almost a billion people around the world are already watching video game content in general, with Asia playing an increasingly important role. The internationally leading provider of gaming and esports analysis Newzoo assumes that the global audience for esports in particular will grow from 395 million in 2018 to 645 million by the end of 2022, a figure that does not include the additional growth since the coronavirus pandemic. “All over the world, people are making digital contact through video games instead of meeting face-to-face. Even when the coronavirus becomes a thing of the past at some point, the industry will have greater acceptance after the crisis and thus further potential for growth," says Martijn Rozemuller.