Abra Wallet and Exchange Service Introduces Token That Tracks Crypto Index
Digital currency wallet and exchange Abra has launched support for a new token, BIT10, that tracks the Bitwise 10 Large Cap Crypto Index, according to an announcement published Oct. 3.
The Bitwise 10 Large Cap
Crypto Index was developed by cryptocurrency asset management firm Bitwise Asset Management and is reportedly listed exclusively on Abra. The index tracks the ten largest cryptocurrencies by market capitalization, currently representing 80 percent of the total crypto market capitalization.
Per the announcement, any investor is now able to acquire the BIT10
token through the Abra app, with a $5 minimum investment. Hunter Horsley, the CEO at Bitwise, said:
"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."
The cost of each BIT10 token reflects the value of 10 coins in the index, while the token’s positions are reportedly held in multi-signature smart contracts on the Bitcoin (BTC) or Litecoin (
LTC) blockchains. The press release further explains the operational principle:
“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 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.”
Last month, Abra enabled the direct purchase and sale of cryptocurrencies for European bank accounts. Customers can now transfer euros or several other national currencies directly to their wallet which can, in turn, can be converted into the 28 cryptocurrencies supported by Abra.
In March, Abra’s CEO Bill Barhydt forecasted that “all hell will break loose” in BTC and
altcoin markets this year. Barhydt said that he talked with hedge funds, high networth individuals, and speculators, who saw a “huge” opportunity in the volatility in the crypto markets. “Once that happens, all hell will break loose. Once the floodgates are opened, they're opened,” Barhydt added.