Someone said that with BTC security one can never be paranoid enough.
In speaking with VCs and others I think some in the investment business may be underestimating security issues.
At least in my career we have never had to deal with this type of security. Someone can raid a huge NY PE firm, hedge fund or even investment bank and there is nothing to steal which could easily be converted to cash.
However, when we talk about $100 mm chunks of Bitcoin floating around on a piece of paper that if someone even snaps a photo of it's gone....that's a new world. People who run gold ETFs most have never seen a bar of gold.....this is different.
People should be aware of things which no one is ever concerned with, no matter how far fetched because no instrument like this has existed before.
So security is a main thing....but not so much specific to anything I'm researching because it's a universal concern for any vehicle.
Security will be a major issue but no more of an issue than for electronic banking.
I don't understand your comment about theft of bitcoin by taking a picture as that would only be the case if you printed out the private key to a wallet. There would be no reason to print that out unless your investment vehicle demands it.
Not knowing how REIT securities work I can't really comment but I do wonder why you'd need to reallocate the underlying Bitcoins to a new shareholder. Doesn't the share abstract away that need? (This paragraph is more to address your comment earlier about handling thousands/millions of private keys etc.)