Product Psychology in Investment Products - 1 Sat vs 1 Bitcoin Vs 1 ETF Share ?

Unit bias psychology matters a lot

e.g. Bitcoin is trading at ~$44,000 today.

ETFs usually launch with a double-digit NAV, often $25. So, say hypothetically that Bitcoin ETFs would launch at $44 per share, removing 3 zeros.

That removes a lot of unit bias. Suddenly Bitcoin exposure looks more affordable. Because 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.