# Last edited on 2014-08-01 15:27:44 by stolfilocal
# NOT POSTED

It is not clear whether the opening of a fund is good or bad for the price.  Also it is not clear whether buying off-exchange is much different than buying on the exchanges, except on the very short term. 

Someone who wants to invest in bitcoin has the option of buying at an exchange, or buying shares of some bitcoin fund.  If he opts for the latter he will not do the former, so from that angle funds should not have much effect on price.

Funds will have a positive effect on the market only if they can attract clients who would not invest in bitcoin directly.  Since funds aim for the long-term investor, why again are they better than buying bitcoins?  How could an uninsured fund backed by bitcoin be less risky than bitcoin itself?