Today, Acorns is introducing the option to add a percentage of the Bitcoin-linked ETF, Proshares Bitcoin Strategy (BITO), to your portfolio. It’s exciting, but that’s not why we’re doing it, and we want to help you understand why.
When we make decisions for our team, customers, and business, we are guided by a set of values:
Here’s how these values shaped our approach to Cryptocurrency.
The Acorns investing philosophy is rooted in the time-tested principles of compounding, long-term investing, and diversification. To keep growing, we look for new ways to lean into these principles. Exposure to Bitcoin can help further diversify your Acorns portfolio for the long-term.
Diversification, simply, is not putting all of your eggs in one basket. Say you invest all of your savings in the hot stock of the moment. If that stock bottoms out, there go your savings and your earning potential. Instead, if you diversify across different investments, and one drops, the others can help you stay on track toward your long-term money goals.
Another form of diversification is investing in assets with low correlation, like stocks and Bitcoin. Assets with low correlation tend to move in different directions, so for instance when stocks are up, Bitcoin or a Bitcoin-linked ETF tend to be down. This further diversifies your portfolio, and can help you weather market bumps over time.
Our mission is to look after the financial best interests of the up-and-coming, beginning with the empowering, proud step of micro investing. To achieve it, we work to always put our customers first.
When Crypto hit the scene, we asked, “Is this right for our customers’ long-term financial wellness?” We may have made money, but many of our customers may have paid for it. Even today, while Cryptocurrency is gaining a more prominent currency position, it’s still considered a highly volatile investment. In 2021, Bitcoin doubled its value, then lost most of that gain in January, 2022.
We had to decide whether offering customers the option to add Bitcoin exposure to their portfolios could support our mission, and their long-term financial health. And if it could, how would it work?
We believe we’ve found a way, and we call it “Bit by Bit.”
ProShares Bitcoin Strategy (BITO) invests in Bitcoin futures, not directly in Bitcoin. 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.
Customers can invest up to 5% of their Acorns Invest portfolio in BITO. That percentage is determined by their investment profile, which includes details like age, income, and money goals.
If a customer is in the “Conservative” portfolio, their target Bitcoin-linked ETF investment will be 1% of their overall portfolio. “Moderately Conservative” is set at 2%, “Moderate:” 3%, “Moderately Aggressive:” 4%, and “Aggressive:” 5%.
So, for example, if you invest $100 a month through a Recurring Investment and you’re in the Moderate portfolio, $3 per month will be allocated to BITO, and the rest will be diversified across stocks and bonds.
Instead of betting the farm on Bitcoin all at once, now you can reduce your risk by investing in a Bitcoin-linked ETF over time.
Bit by bit.
Also, we like to make complicated things easy—Acorns easy. By offering a Bitcoin-linked ETF, we streamline the process. No need for extra apps, digital wallets, and vulnerable passwords. Easily get exposure to Bitcoin, right from your Acorns app.
We know a lot of our customers have been eager for this, and we appreciate your patience. Acorns is built to be a generational brand—to stick with you from birth through building your legacy. So, we will always be thorough and patient, and lead with heart when it comes to looking after your money.
To explore the Bitcoin-linked ETF experience in your Acorns app, look for the card on your Home and Invest screens. If you have any questions, don’t hesitate to view our dedicated customer support materials, or Tweet our Chief Investment Officer, Seth Wunder, @acorns.
From acorns, mighty oaks do grow. It’s our honor to help you grow your oak!
Your Acorns Team
Acorns does not provide access to invest directly in Bitcoin. Bitcoin exposure is provided through the ETF BITO, which invests in Bitcoin futures. This is considered a high-risk investment given the speculative and volatile nature. Investing involves risk including the loss of principal. Please find further disclosures here.