Cryptocurrency wallet provider Abra is launching another token in a bid to offer investors more exposure to the cryptocurrency market.
The Bitwise 10 Large-Cap Crypto Index was created by digital money asset management firm Bitwise Asset Management and is reportedly listed solely on Abra. The file tracks the ten biggest crypto money by market capitalization, right now speaking to 80 percent of the aggregate crypto market capitalization.
Seeker Horsley, the CEO at Bitwise, stated that any investor who is currently ready to acquire the BIT10 token through the Abra application, with a $5 minimum investment.
“Index investing is greatly prevalent in stocks, bonds, and crypto because it gives investors diversified exposure without having to always screen news and attempt to foresee which assets will be generally important. So far in the crypto space, index investing has just been accessible to institutions and accredited investors.”
The token works by utilizing smart contracts to peg a user’s digital money or fiat currency holdings to Bit10. Bit10’s cost will, in turn, move with the performance of those coins.
While the token is based on Bitwise’s index fund, it’s not an exchange-traded fund (ETF), an Abra representative said. Further, the token is like an ETF in its ability to grant investors to an index.
That being stated, Bitwise intends to offer an ETF based crypto money index fund, as already reported. At the time, the organization said it was looking for approval from the U.S. Securities and Exchange Commission (SEC).
A month ago, Abra empowered the direct purchase and sale of crypto money for European ledgers. Users would now be able to exchange euros or a few other national currencies specific to their wallet which can, thus, can be converted into the 28 cryptocurrencies supported by Abra.
In March, Abra’s CEO Bill Barhydt determined that “serious trouble will rise to the surface” in BTC and altcoin markets this year. Barhydt said that he discussed with multifaceted investments, high net-worth people, and speculators, who saw a “huge” opportunity in the instability of the crypto markets. “Once that occurs, crap will hit the fan. Once the floodgates are opened, they’re opened,” Barhydt included.