Bullish Crypto News for 8.2M Investors Who Use the Acorns App
Bitcoin

Bullish Crypto News for 8.2M Investors Who Use the Acorns App

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8 months ago

Acorns users can now allocate up to 5% of their portfolio to a Bitcoin exchange-traded fund, depending on their investment profile.

Bullish Crypto News for 8.2M Investors Who Use the Acorns App

Daftar Isi

A fintech company that helps millions of Americans save and invest now allows its users to gain exposure to Bitcoin.

Acorns — which has an estimated 8.2 million users and $5 billion in assets under management — says its customers can allocate a percentage of their portfolio to a BTC exchange-traded fund.

Explaining the rationale behind its decision, the company said BTC gives investors the opportunity to diversify their holdings — and claimed cryptocurrencies and the stock market have a low correlation. (However, BTC and the Nasdaq 100 have traded in lockstep for most of this year.)

Setting out its new stance in a manifesto, Acorns revealed it has been keeping its eye on cryptocurrencies since it went mainstream — with executives asking themselves whether BTC would be beneficial for the "financial wellness" of their users in the long run.

Noting that Bitcoin is volatile — doubling its value in 2021 but erasing most of these gains in January 2022 alone — Acorns explained that it believes the ProShares Bitcoin Strategy ETF, which offers exposure to BTC futures, is the best approach, adding:

"Similar to stock market futures, Bitcoin futures give you exposure to Bitcoin by investing in their potential value, without requiring that you own the cryptocurrency itself."

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How It'll Work

Acorns says the maximum portfolio allocation that its users can make to Bitcoin stands at 5% — and this will be determined by their investment profile, which takes their age, income and goals into account.

Explaining that its approach can help crypto-curious investors get involved in this fast-moving space without "betting the farm on Bitcoin all at once," Acorns added:

"By offering a Bitcoin ETF, we streamline the process. No need for extra apps, digital wallets, and vulnerable passwords."

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