In an announcement published on its website, Abra confirmed it has started supporting BIT10, a digital currency that was created to track the 10 Large Cap Crypto Index offered by Bitwise Asset Management. Abra users can now purchase the token through the Abra app with a minimum investment of $5.
Each BIT10 token represents the value of 10 coins in the Bitwise index. The positions of the tokens are held in multi-signature smart contracts that are maintained on the blockchains of both BTC and Litecoin. According to Abra, “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.”
The index is exclusively available through Abra, which recently introduced native support for Bitcoin BCH. It tracks the 10 highest performing cryptocurrencies, by market capitalization, which now represent around 80% of the capitalization of the entire crypto market.
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.”
Since September, Abra’s European users have been able to directly purchase and sell cryptocurrencies, provided they have a European bank account. The users can transfer euros, or one of a small handful of European national currencies, into their wallet and then purchase one of the 28 cryptocurrencies currently supported by the company.
Bill Barhydt, the CEO of Abra, expects big things for cryptocurrency. This past March, he predicted that “all hell will break loose” in the markets by the end of the year. His prediction came following discussions he had held with a number of financial industry players who indicated that they see a significant opportunity in the markets. Barhydt anticipates that they will soon be entering the fray and says, “Once the floodgates are opened, they’re opened.”
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.