Summary: The Acorns investing platform currently offers a Bitcoin ETF that allocates 5% of your portfolio towards a Bitcoin-backed exchange-traded fund (ETF). Outside of this ETF, they do not offer any other products or services to buy, sell and trade crypto assets.
If you are looking for an alternative platform that offers over 25 crypto assets in the USA, we recommend eToro. Their platform is licensed and regulated in the USA and is trusted by over 10 million users in the country.
- Fast USD deposits from any US bank account or card.
- Trade over 25 Crypto Assets with low fees and industry-leading spreads.
- FinCEN-licensed and regulated platform in the USA.
Can I Buy Crypto with Acorns?
The Acorns investing app does not directly offer cryptocurrency trading or investing on their platform. That said, they do have a 'Bits of Bitcoin' ETF that allows investors to allocate up to 5% of their portfolio into Bitcoin only. This method purchases synthetic Bitcoin ETFs from the market, which are contracts that track the price of the underlying BTC coin. We recommend avoiding this method to invest in Crypto because it is expensive and carries an additional layer of counter-party risk.
How to Buy Crypto with an Acorns Alternative?
The best alternative in the United States to invest in Cryptocurrencies like Bitcoin, Ethereum and Solana is with the eToro Trading Platform. They offer a much wider selection of assets with over 25+ different cryptocurrencies available to trade and invest in and are regulated in the US by FinCEN.
You can get started with these four simple steps:
- Create an account: Sign up to the eToro US trading platform & verify your identity.
- Deposit funds: Select the 'Deposit Funds' button on the bottom of your screen to deposit USD via Bank Transfer or Credit Card/Debit Card.
- Find your Crypto: Once the USD hits your account, find the Crypto you want to buy on the eToro platform with their 'Discover' tab.
- Execute your trade: Input the USD amount you want to invest and execute your trade.
Acorns Bitcoin ETF Overview
The Acorns Bitcoin ETF operates with the support of the renowned ProShares Bitcoin Strategy (BITO) ETF, facilitating investments in Bitcoin futures through the reputable Chicago Mercantile Exchange (CME). This unique approach allows you to gain a simulated exposure to Bitcoin without the necessity of holding the cryptocurrency directly in your portfolio. Acorns permits investors to allocate up to 5% of their portfolio to this innovative financial instrument, offering a streamlined avenue to venture into the crypto market.
What is Acorns?
Acorns is a micro-investing app that allows users to invest spare change from everyday purchases into a diversified portfolio of stocks and ETFs. The app is designed to help people save and invest money with very little effort or thought. The company was founded in 2012 by Walter and Jeff Cruttenden. The company is headquartered in Irvine, California. The Acorns platform has over 4 million users and has invested over $1 billion on behalf of its clients. The app is available on iOS and Android devices.
Acorns offer two investment plans: the Acorns Core portfolio and the Acorns Later portfolio. The Acorns Core portfolio is a balanced mix of stocks and ETFs that is designed to be a long-term investment. The Acorns Later portfolio is a more aggressive mix of stocks and ETFs that is meant for investors who have a longer time horizon.
In conclusion, while Acorns does not allow direct cryptocurrency trading or investment, it does provide a 'Bits of Bitcoin' ETF which permits investors to allocate up to 5% of their portfolio into Bitcoin, though with additional costs and risks. For a more comprehensive crypto trading experience, the eToro platform is recommended due to its extensive asset selection, offering over 25 different cryptocurrencies to trade and invest in.
The process is straightforward, involving account creation, fund deposit, crypto selection, and trade execution. If still considering Acorns for Bitcoin exposure, remember that its Bitcoin ETF, backed by ProShares Bitcoin Strategy (BITO) ETF, allows synthetic exposure to Bitcoin up to a maximum of 5% of one's portfolio.