Crypto Wallet Abra Introduces Cryptocurrency Index For Retail Investorsbr>
BIT10, developed by crypto asset management firm Bitwise Asset Management, tracks the ten largest cryptocurrencies, currently representing 80 percent of the total crypto market capitalization. Each month, the set of ten coins is rebalanced by Bitwise, adding and removing coins to adjust to the constantly changing market.
“We created the BIT10 token to allow greater access to cryptocurrency investing by making the experience simple and accessible,” said Bill Barhydt, Abra Founder and CEO. “Through partnerships like this one with Bitwise, Abra has created an unprecedented opportunity for the everyday person to start investing in crypto.”
Listed exclusively on Abra, the new BIT10 token allows investors to invest in all 10 cryptocurrencies at once. Like other cryptocurrencies, BIT10 can be purchased in fractional amounts, so investors can decide which amount works best for them. There’s a low $5 minimum, no restrictions on when investors can buy or sell, and no fees on transactions.
The price of each BIT10 token is based on a real-time price feed of the Bitwise 10 Large Cap Crypto Index, while its positions are held in multi-signature smart contracts on the bitcoin or Litecoin blockchains.
“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 said. “Abra will get a real-time price feed from Bitwise Asset Management and the BIT10 investor will see the market movement up or down reflected in the price of their BIT10 tokens.”
Bitwise CEO Hunter Horsley said that 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,” Horsley said. “We’re thrilled for that to be changing today with the BIT10 on Abra, which is available to anyone.”