U.S. fintech Acorns to give users exposure to bitcoin via ProShares ETF

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U.S. fintech Acorns to give users exposure to bitcoin via ProShares ETF

 Acorns, a U.S. financial technology company, will allow customers to use their app to invest up 5% in bitcoin via an exchange-traded-fun

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Acorns, a U.S. financial technology company, will allow customers to use their app to invest up 5% in bitcoin via an exchange-traded-fund. This is in response to growing interest from cryptocurrency users, the company announced Tuesday.

The company, based in Irvine, California will provide bitcoin exposure for users through the ProShares Bitcoin exchange-traded Fund (ETF). It began trading on October 1st as the first U.S.-based bitcoin futures-based ETF.

Robinhood Markets Inc., TD Ameritrade, Wealthfront and other robo advisors have begun to offer cryptocurrency exposure to customers over the last few years through direct trading and investment vehicles. This is because of growing interest in these digital assets.

Based on a customer’s investment profile (age, income, and overall financial goals), Acorns will determine how much of their portfolio can be invested in bitcoin.

Noah Kerner, chief executive officer of Acorns, stated in an interview that this percentage can range from a conservative 1% exposure up to an aggressive 5% exposure.

He stated that they were trying to promote the philosophy of diversification as well as the principles of long-term investment.

Kerner said that around two-thirds (4.6 million) of Acorns subscribers in the United States had not invested crypto due to a lack understanding of how digital currencies work and the volatility associated with this asset class.

Kerner stated, “Something like Bitcoin or any volatile asset type, it’s fine to have exposure to them, but it should only be done through the lense of a balanced portfolio.”

Acorns, which raised $300 million in funding from TPG, reached a valuation of $2Billion earlier this month. A merger proposal with a special-purpose acquisition company was scrapped by the company in January due to market conditions.