Abra, which offers an app for both iOS and Android platforms and allows users to buy, sell, and hold 25 cryptocurrencies and 50 fiat currencies in one place, has extended support for a new token, named ‘BIT10’ that tracks the Bitwise 10 Large Cap Crypto Index, according to a media report published Oct. 3.
The Bitwise 10 Large Cap Crypto Index was created by crypto asset management company Bitwise Asset Management and is supposedly listed exclusively on Abra. The index is structured such that it tracks the ten largest cryptocurrencies by market capitalization. Notably, the top ten cryptos represent 80% of the total crypto market capitalization.
According to the announcement, crypto investors will be able to purchase BIT10 token via the Abra app. A minimum of $5 can be invested through the app. 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.”
The value of each BIT10 token equals the value of 10 coins in the index. A multi-signature smart contract on the Bitcoin (BTC) or Litecoin (LTC) blockchain supposedly holds the token’s positions. The news release further illustrates the theory behind functioning of the smart contract.
“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.”
A month ago, Abra started permitting the direct purchase and sale of cryptos by clients using European bank accounts. Clients can move euros or many other national currencies directly to their wallet which can be later exchanged for any of the 28 cryptos supported by Abra.
Earlier in March, Bill Barhydt, Abra’s CEO forecast that “all hell will break loose” in Bitcoin and altcoin markets in 2018. Barhydt explained that his opinion was based on the talks he had with speculators, hedge funds and high networth individuals who visualized a “huge” trading opportunity in the volatility of the crypto markets. Barhydt said “Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened.”
