Abra launches new crypto index token in partnership with Bitwise Asset Management
Abra, the all-in-one cryptocurrency wallet that gives users the freedom to buy, store, and invest in 28 cryptocurrencies, announced on Wednesday that anyone around the world can now invest in the new Bitwise 10 Crypto Index Token (BIT10) through the Abra app.
The new token tracks the professionally-managed Bitwise 10 Large-Cap Crypto Index through a partnership with San Francisco-based Bitwise Asset Management, the leading provider of cryptocurrency indexes and index funds.
The Bitwise 10 Crypto Index Token gives retail investors a simple way to benefit from the diversification and rebalancing of index investing. It gives them an insight into a set of 10 largest crypto assets that make up about 80 percent of the cryptocurrency market, according to the press release.
The set of digital assets is constantly screened and updated in accordance with Bitwise’s robust transparent index methodology, thus giving users a clear indication of the constantly changing market scenario.
The composition of BIT10 will be published on Abra and will reflect the monthly rebalancing update of the index by Bitwise.
Bitwise Crypto Index works on the following principles:
- Index and pricing decisions must follow a clear, rules-based, and transparent process.
- If the judgment of the Bitwise Crypto Index Committee is required when applying those rules, decisions will be made public with full documentation of the decision-making process.
- Indexes are designed taking into account liquidity, capital controls, exchange stability, custody limitations, and other factors in a rules-based manner.
The release goes on to add that with BIT10, anyone around the world can invest in a crypto index on the Abra app and the all this with a minimum investment of $5. Using Abra’s successful stablecoin model on the backend, BIT10 positions are held in multi-signature smart contracts on the Bitcoin or Litecoin blockchain.
The working principle is simple here as the token works by using smart contract that effectively pegs the asset with either fiat currency or cryptocurrency to the same amount of BIT10 tokens. The BIT10 investors then get a real-time price feed from Bitwise Asset Management and can see the variation reflected in the price of their BIT10 tokens.
Speaking about this latest partnership, Bill Barhydt, Abra Founder, and CEO said, “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.”
Echoing similar optimism, Bitwise CEO Hunter Horsley 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. We’re thrilled for that to be changing today with the BIT10 on Abra, which is available to anyone,” he added.
Image via Shutterstock
Join our Telegram group