Always remember, Bitcoin are divisible

Would you rather own 1 share of stock at $1,000 per share, or 100 shares of stock at $10 per share? 

For most investors, owning more units of an asset seems more appealing, but the truth is, it really doesn’t matter. Unfortunately, individual investors have been proven to have a bias against investments that have high price tags. 

Herein lies the problem: The market price of an asset is not a viable way to determine if it’s a valuable investment. What matters is the potential upside of that investment. So, investors are potentially missing out on lucrative investments.

This psychological fallacy, known as unit bias, is something that investing in a Bitcoin ETF could solve for many investors. 

Unit bias in Bitcoin

Unit bias has a strong foothold when it comes to Bitcoin. There’s no shortage of investors who claim they would rather use $1,000 to invest in Solana because its price is low, rather than own a small percentage of one Bitcoin. With unit bias taking a stranglehold on the Bitcoin industry, individuals are seeking a “cheap” way to invest in the industry’s largest, most important asset.

How a Bitcoin ETF can help

A major benefit to invest in a Bitcoin ETF is that it will knock down the wall of unit bias and present investors with a more palatable price to invest. For instance, the current price of the Grayscale Bitcoin Trust (GBTC) is around $30, which is more comforting to the average investor than a $30,000 price point. 

In the end, unit bias is a delusion of the masses. But it also doesn’t matter, because so much capital is waiting on the sidelines to invest in Bitcoin when individuals feel like they can at least own a sizable portion. A Bitcoin ETF can help eliminate unit bias and move capital into the asset.