It can be expected that this would enhance market liquidity, and thereby improve the risk transfer and price  6  discovery functions of futures markets.
However, if the diversity of market participants is impaired due to the growing presence of a particular investor type, prices might cease to appropriately reflect the fundamentals behind the transactions because they might be excessively affected by trading strategies employed by those investors. In fact, the growing share of investment trusts and ETFs in futures markets has affected the correlation between different asset types.