The high price of a single Bitcoin, currently valued at $43,973, is discouraging potential investors who are reluctant to purchase only a fraction of the cryptocurrency. This is due to unit bias psychology, which favors owning complete units, as explained by VanEck advisor Gabor Gurbacs. He proposes that Bitcoin exchange-traded funds (ETFs) could be a solution to this issue.
In a series of posts on X, Gurbacs expressed his surprise that many people are still unaware they can own a part of a Bitcoin. He also noted that there are even more individuals who prefer to own complete assets. He stated, “I was surprised that a good number of people didn’t know that one can own a fraction of a Bitcoin and even more frequently people didn’t want to own a fraction of a coin.” He further emphasized that owning a whole of something feels more appealing to investors than owning a fraction of an investment.
While Gurbacs acknowledges that this debate is not new, he believes that biases are one of the most valuable tools for understanding markets. He added, “Simplistic but unit bias psychology matters a lot. I think about this a lot.”
Meanwhile, the crypto industry is filled with high expectations that the United States Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF in the upcoming week. However, the broader financial services industry is more skeptical of its chances. A recent survey by Bitwise, which included responses from 437 financial advisors, found that only 39% of U.S. financial advisors anticipate the approval of a Bitcoin ETF this year.
It has been reported that the final steps for a spot Bitcoin ETF debut on Wall Street are in progress, with final revisions from asset managers expected by the morning of Jan. 8. These revisions must be submitted through S-1 filings before the start of business and applicants are expected to reveal remaining fees and tickers. Notably, BlackRock has not yet disclosed the fees associated with its ETF.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Gabor Gurbacs |
| Companies | Bitwise, BlackRock, VanEck, X (formerly Twitter), United States Securities and Exchange Commission (SEC) |
| Currencies | Bitcoin |
| Securities | None |
