Acorns, an American fintech firm, has revealed that customers can now add bitcoin exposure through the Proshares Bitcoin Strategy (BITO) ETF. Acorns’ clients can now allocate up to 5% of their funds into BITO.
Bitcoin Exposure for Acorns Clients
Acorns, a U.S. fintech firm, stated Tuesday that there has been increased interest in cryptocurrency investments. Acorns, a micro-investing company located in Irvine California, specializes in robo-investing. Acorns, a father-son partnership of Jeffrey James Cruttenden and Walter Wemple Cruttenden III was established ten year ago. Acorns reported that they had 3.0 billion dollars in assets under management (AUM) in 2020 and 8.2million customers.
According to the announcement on Tuesday, the fintech company determines how much of a customer’s portfolio can be allocated into the Proshares Bitcoin Strategy ETF (NYSE: BITO). In an interview, Acorns’ chief executive officer, Noah Kerner, said there’s a 1% conservative option and up to an “aggressive” 5% exposure in the portfolio options. Kerner explained that roughly 4.6 million of the company’s customers have not invested in digital currencies because of a lack of understanding.
“We’re really trying to drive home the philosophy of diversification and the principles of long-term investing,” Kerner remarked.
Kerner stated that some customers had not made investments in digital currencies due to the volatility. Proshares Bitcoin Strategy ETF trades for $26.91 per Share and is down 37.88% since its November 9th, 2021 all-time high (43.32)
“Something like bitcoin or any volatile asset class, it’s fine and sensible to have exposure to it, but it should be through the lens of a balanced portfolio,” Kerner concluded.
Acorns has raised $300 million this month from strategic investors through a TPG-led finance round. The injection of capital lifted the company’s valuation to $1.9 billion. In the past twelve months, cryptocurrency investment has become a popular trend in robo-investing. These include firms such as Betterment, TD Ameritrade Wealthfront and Robinhood Markets Inc.
What do you think about Acorns adding bitcoin exposure investing via Proshares’ BITO ETF? Comment below and let us know how you feel about the subject.
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