How to invest in Web 3.0

Global communication network (World Map Credit to NASA) — (Image credit: Getty Images)

The internet is entering a new phase, known as Web 3.0, which shifts power from centralised technology giants towards individual users by prioritising decentralisation, privacy and digital ownership. Technologies such as blockchain, decentralised finance (DeFi) and nonfungible tokens (NFTs) are driving this change, offering a more user-controlled and resilient internet. Web 3.0 has the potential to revolutionise how we interact online, promising greater autonomy and opportunities for users. Web 3.0 represents more than just a technological shift. It’s a movement towards decentralisation, new digital economies and empowering users.

For investors seeking exposure to this trend, the ETC Group Web 3.0 UCITS ETF (LSE: WEB3) offers an option. This exchange-traded fund focuses on companies at the forefront of Web 3.0 development – companies building the digital infrastructure, decentralised applications and “metaverse” platforms that could shape the next era of the internet. Here are three key holdings.

Top stocks to buy into the Web 3.0 boom

Coinbase Global’s (Nasdaq: COIN) core function as a platform for buying, selling and storing digital assets makes it a foundational player in the Web 3.0 system. The company’s integration with decentralised finance aligns closely with the principles of Web 3.0, enabling users to access tokens and engage with decentralised applications (known as “dApps”) through its platform.

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In addition, Coinbase has launched its own NFT marketplace, tapping into a key aspect of Web 3.0’s focus on digital ownership. The rise of NFTs reflects the broader shift towards a creators’ economy, where digital assets can be owned, traded and monetised. With its self-custody wallet and seamless integrations with various dApps, Coinbase is offering users a direct gateway into the decentralised web.

Roblox (NYSE: RBLX) is a prominent example of the creator-driven economy that Web 3.0 seeks to enhance. The platform empowers users to design, monetise and share their own virtual experiences, allowing creators to profit directly from their digital work. This aligns with Web 3.0’s vision of decentralised ownership, where individuals have greater control over their digital assets and creations. Beyond this, Roblox is deeply involved in developing the metaverse, a key component of Web 3.0. The metaverse is envisioned as an interconnected digital space where users can socialise, work and trade in virtual environments. Roblox’s thriving virtual economy, powered by its in-platform currency Robux, mirrors the decentralised financial models that Web 3.0 aims to establish. By facilitating immersive, user-generated worlds, Roblox is setting the stage for the future of online interaction.

Powering the new era’s infrastructure

The infrastructure that underpins Web 3.0 requires huge computing power, and Nvidia (Nasdaq: NVDA) is a central player in this area. Its market-leading graphics processing units (GPUs) are vital for blockchain processing, artificial intelligence (AI) applications and the development of the metaverse. GPUs are crucial to supporting the computational demands of decentralised networks and applications, making Nvidia’s technology integral to Web 3.0’s infrastructure.

Furthermore, Nvidia’s Omniverse platform is enabling the creation of interconnected virtual worlds, fostering collaboration and interoperability within the metaverse. The group is also actively involved in research aimed at enhancing blockchain technology and exploring ways to improve efficiency and scalability in decentralised networks.

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Chanchal Samadder is a seasoned professional in the exchange-traded product ETP and ETF industry, with over 15 years of experience in building market-leading, innovative investment franchises. Prior to joining ETC Group in 2023, Chanchal held senior leadership roles across distribution, product and strategy at BlackRock, Aberdeen Standard Investments and Lyxor (Amundi).