[Editors Note: If approved a Bitcoin ETF could help start to usher in the next wave of retail investment into Bitcoin and could have a big effect on the price to the upside.
Having worked at a major UK brokerage in 2013 as an investment consultant, I spent every day consulting with retail investors which provided me with a great insight into their investing behaviour.
The reason why Exchange Traded Funds (ETF’s) and many other funds are so popular with Retail Investors, is because many retail investors are very passive by nature. This is partly contributed to by the fact that many have full time jobs and in many cases they don’t have the time or interest to carry out in-depth research on many individual investments.
Funds provide Investors with exposure to multiple types of investments, through one low maintenance security that is professionally managed for a small premium.
Because of this, the creation of funds such as the Winklevoss Bitcoin ETF, should help usher in a new wave of retail investment and successful completion of the fund could be a catalyst for the creation of more Bitcoin secondary market funds in the future.