Sunday, September 25, 2022

Acorns Offer Customers Access to BTC Investment Through ProShares ETF

As global curiosity around cryptocurrency continues to surge, California-based micro-investing and savings firm Acorns has announced its readiness to offer its teeming customers access to Bitcoin (BTC) investment through an Exchange Traded Fund (ETF).

The Fintech firm which made this announcement on Tuesday said that this Bitcoin investment option would be made possible via the Proshares Bitcoin Strategy ETF which is a Bitcoin futures fund that went public last October.

ProShares Bitcoin Strategy (BITO) invests in Bitcoin futures, but not directly in Bitcoin. How this works is that Bitcoin futures give one exposure to the cryptocurrency – Bitcoin by investing in its potential value, without having to own the coin itself.

According to the firm, about two-thirds of its 4.6 million customers hold a very shallow understanding of how cryptocurrency works, and so the firm would be involved in deciding how much exposure a person can allocate to this investment class.

With a valuation of $2 billion, Acorn has said that by being the final arbiter, the percentage of a customer’s portfolio that can be put into BTC investment would range from 1% to 5%.

This percentage would, however, be determined through the customer’s overall profile such as the income level, age, and customer’s financial goals.

Acorn’s Chief Executive Officer, Noah Kerner disclosed that exposure to Bitcoin and other volatile digital assets is awesome but such exposure should be carried out through the lens of a balanced portfolio.”

According to Kerner, the inclusion of this new digital asset class as an investment option to users of the Acorn mobile app would open the doors for portfolio diversification.

Wider Access to Crypto Investment

All thanks to mobile investment apps and their recognition of cryptocurrency as a valid investment option, regular individuals on the street can now invest in cryptocurrency right on these mobile apps.

A statement on Acorn’s website explains that by offering a Bitcoin ETF on its mobile app, investing in cryptocurrency would become super easy. This implies that users of the app have no need for an additional crypto app, digital wallets, or vulnerable passwords.

This Bitcoin exposure on Acorns, therefore, places the firm on the same pedestal with the likes of Robinhood, Public, and TD Ameritrade.

 

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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