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US Fintech Firm Acorns Increases Crypto Exposure Through Investing in Proshares Bitcoin ETF

Acorns, an American financial technology firm (fintech), has announced that customers can now add bitcoin exposure via Proshares Bitcoin Strategy (BITO). 

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US Fintech Firm Acorns Increases Crypto Exposure Through Investing in Proshares Bitcoin ETF

Acorns clients now have the option to allocate up to 5% from their funds into BITO.

Acorns customers can add Bitcoin exposure to their portfolios

Acorns , a U.S. fintech firm, detailed Tuesday that there has been increased demand for cryptocurrency investment. The micro-investing and robotics business is based in Irvine, California. Acorns launched ten year ago by father-son team Walter Wemple Cruttenden Jr. and Jeffrey James Cruttenden. Statistics show that Acorns had $3 billion in assets under management (AUM), and 8.2 million customers in 2020.

The announcement made Tuesday by the fintech company stated that the company decides how much of a customer’s portfolio can go into the Proshares Bitcoin Strategy (NYSE: BITO). Noah Kerner, chief executive officer of Acorns, stated that there are two options for portfolio exposure. One is a conservative option with a maximum of 1% and one that allows for aggressive exposure. The other option gives a portfolio with a maximum of 5%. Kerner said that approximately 4.6 million customers of Acorns have not yet invested in digital currencies due to a lack of knowledge.

Kerner stated, "We are really trying to drive home diversification and long-term investing principles,"

Kerner said that customers haven't invested in digital currencies due to volatility. Proshares Bitcoin Strategy ETF currently trades at $26.91 pershare and is down 37.88% compared to its $43.32 all time high (ATH), on November 9, 2021.

Kerner stated, "Something like Bitcoin or any volatile asset type, it's fine to have exposure to but it should be through a lens of a balanced portfolio."


 

Acorns secured $300 million in financing from strategic investors. This round was led by TPG. The company's value has risen to $1.9 billion due to the capital injection. Over the past 12 months, robo-investing and microinvesting firms have been shifting towards cryptocurrency investments. This includes companies like Betterment and TD Ameritrade Wealthfront Inc.