In the field of cryptocurrencies, a unique psychological phenomenon known as “unit bias” has been identified as a barrier for investors. Gabor GurvacsStrategists at investment firm VanEck reveal that investors tend to prefer owning entire units of an asset, which can make the high price of a single Bitcoin daunting. This has made some potential investors hesitant to buy even a small portion of the digital currency.
Gurbacs proposes a solution: a Bitcoin exchange-traded fund (ETF). These financial products have the potential to democratize investing in Bitcoin, allowing individuals to invest in the cryptocurrency without purchasing an entire coin. „It's about the psychological satisfaction of owning 1 of something rather than 0.001 of something,“ Gurbax explains.
As the investment community takes note, expectations are rising that the U.S. Securities and Exchange Commission (SEC) may approve a spot Bitcoin ETF in the near future. This move could pave the way for broader acceptance and investment in Bitcoin.
The financial services industry remains cautious, with a Bitwise survey showing only 39% of financial advisors expect ETF approval this year, but final preparations are underway. The asset manager is expected to submit the final revised version of the ETF's potential launch, including fees and ticker, by January 8.