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The American financial technology (fintech) firm Acorns has announced customers now have the option to add bitcoin exposure via the Proshares Bitcoin Strategy ETF (BITO). Acornsâ clients can now allocate up to 5% of their funds into BITO.
Acorns Customers Can Add Bitcoin Exposure to Their Portfolios
U.S. fintech company Acorns detailed on Tuesday that it has seen increased demand for cryptocurrency investments. The Irvine, California-based company specializes in micro-investing and robo-investing. Acorns was launched ten years ago by the father and son team Walter Wemple Cruttenden III and Jeffrey James Cruttenden. Statistics indicate that in 2020, Acorns held $3 billion in assets under management (AUM) and had 8.2 million customers.
According to the announcement on Tuesday, the fintech company determines how much of a customerâs portfolio can be allocated into the Proshares Bitcoin Strategy ETF (NYSE: BITO). In an interview, Acornsâ chief executive officer, Noah Kerner, said thereâs a 1% conservative option and up to an âaggressiveâ 5% exposure in the portfolio options. Kerner explained that roughly 4.6 million of the companyâs customers have not invested in digital currencies because of a lack of understanding.
âWeâre really trying to drive home the philosophy of diversification and the principles of long-term investing,â Kerner remarked.
Kerner also mentioned that customers have not invested in digital currencies because of volatility. The Proshares Bitcoin Strategy ETF is currently trading for $26.91 per share and it is down 37.88% from its $43.32 all-time high (ATH) on November 9, 2021.
âSomething like bitcoin or any volatile asset class, itâs fine and sensible to have exposure to it, but it should be through the lens of a balanced portfolio,â Kerner concluded.
This month, Acorns raised $300 million from strategic investors in a finance round led by TPG. The injection of capital lifted the companyâs valuation to $1.9 billion. A trend of robo-investing and micro-investing firms have been moving toward cryptocurrency investments over the last 12 months. This includes firms like Betterment, TD Ameritrade, Wealthfront, and Robinhood Markets Inc.
What do you think about Acorns adding bitcoin exposure investing via Prosharesâ BITO ETF? Let us know what you think about this subject in the comments section below.
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