U.S. fintech Acorns to provide users direct exposure to bitcoin by means of ProShares ETF


March 22 (Reuters) – U.S. monetary innovation company Acorns will enable clients to utilize its app to invest as much as 5% of their portfolio in bitcoin by means of an exchange traded-fund, in reaction to increasing interest from users of cryptocurrency, the business stated Tuesday.

The Irvine, California- based business will use bitcoin direct exposure to users through the ProShares bitcoin exchange-traded fund (ETF), which started selling October as the very first U.S. bitcoin futures-based ETF. learnt more

Retail brokers and robo advisors consisting of Robinhood Markets Inc ( HOOD.O), TD Ameritrade and Wealthfront have actually begun to use clients direct exposure to cryptocurrencies over the previous a number of years either through direct trading or financial investment cars as popular interest in such digital possessions has actually risen. [nL1N2RB1ZQ

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Acorns will determine what percentage of a customer’s portfolio can be put in bitcoin based on their investment profile, which includes age, income and overall financial goals.

That percentage ranges from a conservative 1% exposure to an “aggressive” 5% exposure, Acorns’ chief executive officer, Noah Kerner, said in an interview.

“We’re really trying to drive home the philosophy of diversification and the principles of long-term investing,” he said.

Kerner added that about two-thirds of Acorns’ 4.6 million subscribers across the United States said they had not invested in crypto because of a lack of understanding as to how digital currencies work, as well as the volatility associated with the asset class.

“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 said.

Earlier this month, Acorns notched a valuation of $2 billion after raising $300 million in a funding round led by buyout firm TPG. The company scrapped a proposed merger with a special- purpose acquisition company in January, citing market conditions.

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Reporting by Hannah Lang in Washington
Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.



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