Unlike the cryptocurrency itself, bitcoin ETFs can be
traded by retail investors as easily as stocks and other financial products.
Unlike mutual funds, which are
purchased by retail investors with the intention of holding for the long - term, the motivation for buying ETFs varies according to the type of investor.
Debt securities
bought by retail investors do have repayment risk because their value is determined by the expectation that the issuer repay the principal at maturity.
Russian financial authorities have published a draft bill on cryptocurrencies, defining the main terms of the industry and limiting investments in ICOs,
made by retail investors.
The rally seemed to be driven
by retail investors in Asia, with the largest volume being traded on Bithumb and Bitfinex.
To this end, Ross Norman, CEO of bullion firm Sharps Pixley Ltd., just told Bloomberg that «Bitcoin's been heavily
driven by retail investors, but there'll be some aggressive funds looking for the right opportunity to hammer this thing lower.»
The earlier large rises reflected the second tranche of the privatisation of Telstra and strong activity in the share
market by retail investors.
While there has been a revolution in online trading of
stocks by retail investors in the last 20 years or so, the bond market has been slower to replicate the ease, low costs and lack of hassle stock investors enjoy.
But even then Goldman cautioned that the risks of investing in Shenzhen were higher, as the market was mostly
owned by retail investors, superior growth prospects were likely already priced into high valuations and the stocks were more speculative.
«On a cumulative basis there has not been a dollar added to the US stock market since the end of the financial
crisis by retail investors and pension funds.»
«Sales loads are typical of A Shares; the upfront commission that is typically
paid by a retail investor, sometimes up to 5.75 %,» says Matthew J. Cirillo, senior analyst, Retirement, at Strategic Insight, the parent company of PLANADVISER.
One of the fallacies often
met by retail investors is focusing on «hot» stocks that are trending upwards, and not without good reason.
For instance, in half the countries in the GFIE study, front - end loads either don't exist (albeit rarely) or are commonly negotiated
away by retail investors.
We find that, like many varieties of structured products, the present value of DDs tends to be significantly below par, and is critically dependent on a variety of risk factors that may not be transparent or easily
understood by retail investors.
On the exchange itself, however, trading volumes of bitcoin futures remained comparatively low and was reportedly largely dominated by retail investors [/ URL] as institutional market participants were concerned about the clearing of these new futures.
Rafferty Asset Management LLC and Exchange Traded Concepts LLC had apparently canceled plans to launch three bitcoin funds which could be traded
by retail investors similar to stocks.
Institutional investors rarely invest in the precious metal, let alone crypto - currencies for that matter, and according to them, investments in gold are generally carried out
by retail investors in countries such as India and China, with central banks contributing to the rest of the global demand.
Almost all mutual fund shares are
held by retail investors The last time I looked at ETF statistics the majority of shares in the large index ETF funds (which represent by far the greatest portion of all ETF shares outstanding) were held by institutional, not retail, investors.
Much of the trading in China stems from speculative
trading by retail investors, which tends to be less steady than institutional trading.
Until the 1970s, the investment landscape was largely dominated by wealthy individuals and families; this has since changed markedly, with professional investors now accounting for the largest share of investment activity, though it should be noted that these professionals manage significant mutual fund asset pools that are
driven by retail investors.
It is a tiny market and it is easily spooked but it is heavily invested in
by retail investors.
And more, but I am talking about those that get sold to or done
by retail investors... institutional investors have even more chances to tie up their money for moderate, modest or negative incremental returns.
Indeed, as institutional capital flows into bitcoin, the current meme - driven intra-week market dynamics dominated
by retail investors may instead transition into being more tightly coupled with the real economy.