VanEck’s Gurbacs: Whole Assets More Appealing to Investors than Bitcoin Fractions

cryptonews.com:

Gabor Gurbacs, an adviser at asset manager VanEck, has highlighted the psychological hurdle of unit bias among potential Bitcoin (BTC) investors, saying the desire to own complete units can deter people from entering the market.

In a recent post on X, the VanEck advisor suggested that the introduction of spot Bitcoin exchange-traded funds (ETFs), which some expect will go live as early as this week, could provide a solution to this challenge.

According to Gurbacs, a surprising number of potential investors are still unaware that they can own fractions of a Bitcoin.

And even among those who knew that it’s not necessary to buy a whole coin, there is a preference to own whole assets rather than fractions, he wrote.

“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,” Gurbacs 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.

Owning a full share feels better than owning 0.001 Bitcoin. Seems like a a small thing but it’s a big thing.

— Gabor Gurbacs (@gaborgurbacs) January 6, 2024

The adviser added that the psychological satisfaction of owning a complete share outweighs the appeal of fractional ownership, characterizing it as a significant factor in investor decision-making.

“Owning a full share feels better than owning 0.001 Bitcoin. Seems like a small thing but it’s a big thing,” Gurbacs said.

While acknowledging that this discussion is not new, Gurbacs stressed the significance of unit bias psychology in shaping market behavior. He also noted that understanding biases is essential for