US Fintech Firm Acorns Adds Crypto Exposure Investing via Proshares Bitcoin ETF

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). Acorns’ 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 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 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.

“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.

This month, Acorns raised $300 million from strategic investors in a finance round led by TPG. The injection of capital lifted the company’s 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.