The all-in-one cryptocurrency and exchange wallet app Abra has opened its doors for investment in Bit10, a new token that tracks the top 10 cryptocurrencies by market capitalization. The new token will offer investors more exposure to the cryptocurrency market, and it is in partnership with San Francisco-based Bitwise Asset Management.
Bitwise 10 Large-Cap Crypto Index
Cryptocurrency asset management firm, Bitwise Asset Management developed the Bitwise 10 Large-Cap Crypto Index and is listed exclusively on Abra. The Bitwise 10 Crypto Index Token (Bit 10) enables investors to remain abreast with the ten largest assets by market capitalization constituting 80% of the cryptocurrency market.
Going by the announcement, investors can now leverage the acquisition of the bitcoin token through the Abra app with a minimum investment of $5. The popularity of index investment in stocks has been to the advantage of investors who do not have the luxury of time in monitoring or predicting the most valuable asset. As such, retail investors can now benefit from the diversification and rebalancing of index investing. Commenting on this, the CEO of 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,”
Bitwise CEO Hunter Horsley explained in the release.
The simplicity and accessibility of the Bit10 token is a platform which can be exploited by first-time investors. In his remark, the CEO and founder of Abra; Bill Barhydt noted:
“We created the BIT10 token to allow greater access to cryptocurrency investing by making the experience simple and accessible. Through partnerships like this one with Bitwise, Abra has created an unprecedented opportunity for the everyday person to start investing in crypto.”
How Does BIT10 Works?
BIT10 can only be accessed through the Abra app. 10 coins in the index are the equivalent of the cost of each BIT10 token. Similar to the operation of other cryptocurrencies, BIT can be purchased in fractional amounts, so it is left to the discretion of investors to know which amount is best for them. They can nevertheless enjoy the concession of low buy-ins worth just $5.
Bitwise provides real-time price feed of the Bitwise 10 Large-Cap Crypto Index, and this determines the price of each BIT10 token. Investors have free access to the methodology of the index which is maintained by Bitwise. Assets in the index are rebalanced on a monthly basis in line with the methodology rules based on liquidity, security and trading volume parameters.
The Bitcoin or Litecoin blockchain holds the BIT10 positions in multi-signature smart contracts while employing Abra’s successful, stable coin model on the backend. The asset invested s effectively pegged to its equivalent n BIT10 tokens. In other words, Abra and the user via the amount invested (either in fiat or cryptocurrency) enter into a smart contract.
In line with the published methodology, Bitwise Asset Management furnishes Abra with a real-time price feed, and the investor enjoys the luxury of tracking the upward or downward trend of the market as reflected in the price of their BIT10 tokens.
The efficiency and proven wherewithal of smart contracts in pegging asset values is also the technology used in powering the backend of the Abra app. This technology saves investors the stress of trading fat currency for crypto or other synthetic currencies. The technology can simply be put into effective use by investing in larger portions of the crypto market, all through one crypto asset.
Users will enjoy the comparative advantage of Abra’s technology which is based on a non-custodial wallet. Apart from cutting the need for third parties, users are bound to have more control.