|Oct 04, 2018 01:35 PM||By: Art Vasquez | 2180 Views|
Digital currency wallet and exchange Abra has begun support for a new token, BIT10, that traces the Bitwise 10 Large-Cap Crypto Index, according to a report published Oct. 3.
The Bitwise 10 Large-Cap Crypto Index was developed by cryptocurrency asset control firm Bitwise Asset Management and is reportedly listed entirely on Abra. The index follows the ten largest cryptocurrencies by market capitalization, currently serving 80 percent of the total crypto market capitalization.
Per the report, any investor is now able to obtain the BIT10 token through the Abra app, with a $5 minimum investment. Hunter Horsley, the CEO at Bitwise, stated:
"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 value of each BIT10 token indicates the amount 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 additional describes 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 moves up or down reflected in the price of their BIT10 tokens.”
Last month, Abra allowed the direct purchase and sale of cryptocurrencies for European bank accounts. Customers can now transfer euros or several other national currencies straight to their wallet which can, in turn, can be changed into the 28 cryptocurrencies approved by Abra.
In March, Abra’s CEO Bill Barhydt determined that “all hell will break loose” in BTC and altcoin markets this year. Barhydt stated that he spoke with hedge funds, high net-worth individuals, and philosophers, who saw a “huge” happening in the volatility in the crypto markets. “Once that occurs, all hell will break loose. Once the floodgates are opened, they're opened,” Barhydt figured.