Investing in Bitcoin
Investing in Bitcoin means that you own individual Bitcoin, which is traded on a cryptocurrency exchange.
Trading individual Bitcoin comes with transaction fees that are typically between 2-6%.
Practically, investing in Bitcoin also means that you need a digital wallet to store it, for which you’ll need a password that you cannot lose. Bitcoin does not have a support line or password reset function.
Investing in a Bitcoin ETF
Investing in a Bitcoin exchange traded fund, or ETF, means that you are not investing in individual Bitcoin. Instead, you’re investing in a fund that tracks the value of Bitcoin, and trades on a traditional market exchange, like the Nasdaq. In other words, the ETF attempts to closely mimic the price and performance of Bitcoin.
There are no transaction fees with an ETF, instead they typically charge a management fee of <1%. This cost is included in your Acorns subscription. We don’t charge surprise fees.
You do not need a digital wallet to invest in a Bitcoin ETF.
The Bitcoin ETF offered through Acorns is called Proshares Bitcoin Strategy and trades under the ticker symbol BITO. This ETF trades Bitcoin Futures contracts in an attempt to provide exposure to Bitcoin pricing.
To explore the Bitcoin ETF in your Acorns app, make sure you’re on the latest version of the app, and look for the prompt from your Invest and Invest portfolio screens.
From acorns mighty oaks do grow. We hope this helps you grow your oak!