1) there are winners and losers in gambling too. 99.9% of trades are gambles, not value investments. you can more charitably call it providing liquidity to the value investor, but that's only true of the better known ~20% of equities.
2) retail passive funds are long-term investors, and pricing blips like this will be washed away in the long run. and it's likely a tiny exposure relative to the overall size of the fund.
3) it's an ingenious and mirthful move to target the greedy vs. true investors. if there aren't negative repercussions to the gambling, you'd lose the drive to optimize mispricings and arbitrage opportunities out of the system.
edit: note that the likely purpose of opening up the market to "unsophisticated" investors is to provide added volume and liquidity to "sophisticated" investors, not to provide economic opportunities to the unsophisticated.
2) retail passive funds are long-term investors, and pricing blips like this will be washed away in the long run. and it's likely a tiny exposure relative to the overall size of the fund.
3) it's an ingenious and mirthful move to target the greedy vs. true investors. if there aren't negative repercussions to the gambling, you'd lose the drive to optimize mispricings and arbitrage opportunities out of the system.
edit: note that the likely purpose of opening up the market to "unsophisticated" investors is to provide added volume and liquidity to "sophisticated" investors, not to provide economic opportunities to the unsophisticated.