Acorn, an automated savings fintech app, now allows its users to add a percentage of the Bitcoin ETF — ProShares Bitcoin Strategy (BITO) — to their portfolio. The company said in an announcement that exposure to bitcoin (EXANTE: Bitcoin) can help "further diversify" portfolio for the long-term. Acorn highlights that bitcoin, like other assets with "low correlation" tends to move in different directions.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
The company says it ranges crypto exposure depending on client's risk tolerance. If a client is in the "Conservative" portfolio, their target Bitcoin ETF investment will be 1% of their overall portfolio, while the "Aggressive" portfolio will set 5% exposure to the ETF.
The US Securities and Exchange Commission (SEC) approved the first US bitcoin futures exchange traded fund (ETF) from ProShares in October last year. ProShares's ETF is based on futures contracts under mutual fund rules. These rules, according to SEC head, Gary Gensler, provide "investor protections." While the ETF does not invest in bitcoin (EXANTE: Bitcoin) directly, it provides capital appreciation through actively managed exposure to bitcoin futures contracts.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.