Abra Launches BIT10 Token Tied to Bitwise Crypto Index

 In Exchanges, Governments and Regulations

Digital asset mobile app Abra has introduced a new crypto investment product, providing exposure to the ten largest cryptocurrencies by market cap.

Cryptocurrency trading app and wallet services provider Abra launched on Wednesday a new token in partnership with crypto indexes provider Bitwise Asset Management. The Bitwise 10 Crypto Index Token (BIT10) will provide exposure to the ten largest virtual currencies by market capitalization.

According to a company press release, BIT10 is available on the Abra app as of Wednesday. The token positions are held in multi-signature smart contracts on the Bitcoin (BTC) or Litecoin (LTC) blockchain.

“Once invested, Abra and the user are entering into a smart contract that effectively pegs the asset invested (either fiat currency or cryptocurrency) to the same amount of BIT10 tokens,” Abra explained.

The cost of each BIT10 will be based on a real-time price feed of the Bitwise 10 Large Cap Crypto Index. It can also be “purchased in fractional amounts, so investors can decide which amount works best for them.” There is a $5 investment minimum but no restrictions on when you can buy or sell and no fees on transactions.

BIT10 will be rebalanced monthly, with Bitwise adding and removing coins to adjust the product to the constantly changing crypto market. Purchasing the coin, investors essentially buy into all ten cryptocurrencies at once, accessing “nearly 80 percent of the cryptocurrency market,” Abra added.

“We created the BIT10 token to allow greater access to cryptocurrency investing by making the experience simple and accessible,” Abra founder and CEO Bill Barhydt said.

Bitwise CEO Hunter Horsley commented:

“Index investing is extremely popular in stocks, bonds, and crypto because it gives investors diversified exposure without having to constantly monitor news and try to predict which assets will be most valuable. So far in the crypto space, index investing has only been available to institutions and accredited investors. We’re thrilled for that to be changing today with the BIT10 on Abra, which is available to anyone.”

While providing investors with exposure, BIT10 is not an exchange-traded fund (ETF). Bitwise applied in July with the US Securities and Exchange Commission to list an ETF based on its cryptocurrency index fund. The regulator is yet to decide on the new product proposal.

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