- Abra says the BIT10 token tracks the Bitwise 10 Large Cap Crypto Index.
- The BIT10 is the world’s first index for retail investors and it gives individual investors an opportunity to benefit from the diversification and rebalancing of crypto index investing.
- Abra says anyone around the world can now invest in the BIT10 via its app, with as little as $5, with no restrictions on entry or exit timing, and no fees.
ABRA, the creators of the ABRA mobile bitcoin wallet app, have launched the Bitwise 10 Crypto Index Token (BIT10) token to make it easy for retail investors to invest in the Bitwise 10 Large Cap Crypto Index through the Abra app, according to a blog post by the firm on October 3, 2018.
ABRA Joins Forces with Bitwise to Create BIT10 Token
Abra cryptocurrency wallet and exchange, in conjunction with the highly reputed Bitwise, have created the BIT10 token, exclusively listed on the Abra platform, to give retail investors access to the professionally-managed Bitwise 10 Crypto Index Token.
Per Abra, the initiative will now allow its users to gain exposure to 80 percent of the cryptocurrency market with just one asset.
Abra says the index will track the price of the 10 largest cryptoassets by market cap. All cryptos in the BIT10 must meet several criteria including liquidity, security, and robustness.
Even at that, Abra claims Bitwise re-balances the coins each month by either adding, removing or adjusting weights of coins according to the market situation.
Interestingly, while the Bitwise index for institutional investors requires participants to have a tremendous amount of capital, anybody from anywhere in the world can invest in the BIT10 crypto index with as little as $5 and the team says there are no restrictions on entry, exit timing or hidden charges.
How it Works?
According to Abra, BIT10 transactions are held in multi-signature smart contracts on the Bitcoin or Litecoin distributed ledger.
“Once invested, Abra and the user enter into a smart contract that effectively pegs the asset invested to the same amount of BIT10 tokens.”
According to the Bitwise methodology, BIT10 investors will be able to see the market movements reflected in the price of their BIT10 tokens.
Founded in 2017, Bitwise Asset Management is the creator of the world’s first crypto index fund, the HOLD 10 index, which allows institutional investors to get exposed to bitcoin and other cryptos.
In related news, on September 1, 2018, Blockchain Reporter informed that Bitwise had allied with Morgan Creek Capital Management to launch a new cryptocurrency index fund for institutional investors.