With the Bitcoin futures initiative, Acorns is implementing its philosophy of diversification as well as applying principles of long-term investing.
Acorns, American financial technology and financial services company that specialize in micro-investing, has announced adding support for Bitcoin (BTC) ETFs. According to Ancor, now you can add a Bitcoin ETF to your portfolio in order to diversify it for the long term. Now, customers can invest up to 5% of their Acorns Invest portfolio in Bitcoin futures. As Acorns has explained, that percentage was determined by their investment profile, which includes details like age, income, and money goals.
Acorns Chief Investment Officer Seth Wunder commented:
“We’ve always been open-minded and flexible to the idea that as other asset classes mature and become something that we can deliver to customers, we would love to include that in the appropriate way. Cryptocurrency, specifically bitcoin, in our opinion has gotten to that place where it’s an acceptable piece of people’s portfolios.”
As Acorns CEO Noah Kerner has said, most of the company’s 6.8 million customers have not invested in digital currencies because of a lack of understanding as well as the volatility of these assets. However, it is “fine and sensible” to have them in a portfolio. It should be well balanced, therefore, there will be a 1% conservative option and up to an “aggressive” 5% exposure to cryptos in the portfolio options.
Other cryptocurrencies will be available later as well. Seth Wunder stated:
“As people choose to customize their portfolios with us in the future, we will give them the option in time to add other cryptocurrencies to the degree that they want. It will be a two-pronged approach: what they have in their portfolios and then what they choose to customize.”
With the Bitcoin futures initiative, Acorns is implementing its philosophy of diversification as well as applying principles of long-term investing.
About Acorns
Acorns is a California-based fintech company that offers a simple, low-cost passive investing solution suitable to new investors. It gives its customers a diversified portfolio of low-cost ETFs suited to their risk tolerance and goals, based on their age, net worth, income, etc. Acorns’ main saving and investing products include Invest, Later, Spend, Found Money and Early.
Being a robo-advisor, Acorns tries to make investing as easy as possible. With no account minimum, you can start recurring contributions pretty quickly and also round up your purchases on linked accounts to get money in the market, even if you don’t think of yourself as an investor.
Recently, Acorns raised $300 million from private investors in a Series F funding round. Following the capital raising event, Ancors’ valuation soared to $1.9 billion, which is more than twice as much as its last private round valuation. BlackRock, Bain Capital Ventures, Galaxy Digital led the round.
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