US Fintech Firm Acorns Adds Crypto Exposure Through Proshares Bitcoin ETF

shutterstock 2087189875

US financial technology (fintech) company Acorns has announced that customers now have the option to add bitcoin exposure through the Proshares Bitcoin Strategy ETF (BITO). Acorns customers can now invest up to 5% of their money in BITO. Acorns customers can add Bitcoin exposure to their wallets US fintech firm Acorns announced on Tuesday that […]

US financial technology (fintech) company Acorns has announced that customers now have the option to add bitcoin exposure through the Proshares Bitcoin Strategy ETF (BITO). Acorns customers can now invest up to 5% of their money in BITO.

Acorns customers can add Bitcoin exposure to their portfolios

US fintech firm Acorns announced on Tuesday that it has seen increased demand for cryptocurrency investments. The Irvine, California-based company specializes in micro and robo-investments. Acorns was launched ten years ago by father and son team Walter Wemple Cruttenden III and Jeffrey James Cruttenden. Statistics indicate that in 2020, Acorns had $3 billion in assets under management (AUM) and had 8.2 million customers.

According to Tuesday’s announcement, the fintech firm controls how much of a client’s portfolio can be allocated to the Proshares Bitcoin Strategy ETF (NYSE:BITO). In an interview, Acorns’ chief executive officer, Noah Kerner, said there is a conservative option of 1% and up to an “aggressive” exposure of 5% in the portfolio options. Kerner explained that about 4.6 million of the company’s customers have not invested in digital currencies due to a lack of understanding.

“We’re really trying to bring home the philosophy of diversification and the principles of long-term investing,” Kerner noted.

Kerner also mentioned that customers have not invested in digital currencies due to the volatility. The Proshares Bitcoin Strategy ETF is currently trading at $26.91 per share and is down 37.88% from the $43.32 all-time high (ATH) on November 9, 2021.

“Something like bitcoin or any volatile asset class, it’s fine and sensible to have exposure to it, but it has to be through the lens of a balanced portfolio,” Kerner concluded.

This month, Acorns raised $300 million from strategic investors in a funding round led by TPG. The capital injection raised the company’s valuation to $1.9 billion. A trend of robo-investing and micro-investing firms has been moving towards cryptocurrency investment over the past 12 months. This includes companies like Betterment, TD Ameritrade, Wealthfront, and Robinhood Markets Inc.

What do you think about Acorns adding bitcoin exposure investments through Proshares’ BITO ETF? Let us know what you think about this topic in the comments section below.

Leave a Reply

Your email address will not be published.