Abra has announced a token which will embroil cryptocurrency index funds in it, called the BIT10. It will weigh in on the top 10 cryptocurrencies according to market capitalisation. The top 10 cryptocurrencies currently occupy 80% of the total cryptocurrency market capitalisation.
BIT10 will have a minimum buy-in of $5 with zero fees resulting in regular traders being allowed to get in the cryptocurrency index fund market. Most of the cryptocurrency exchanges which have incorporated index funds such as Coinbase target investors with huge investments. Thus BIT10 will challenge this and let anyone partake especially the fickle minded who don’t know which cryptocurrency to start trading in if they are a beginner.
BIT10 will also help those that are busy with their day to day life and want to get in the cryptocurrency action in a click of a button.
The announcement explained how it would work-
“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.”
Bitwise Asset Management will help manage BIT10 in terms of it consisting of 10 cryptocurrencies weighed by market capitalisation. A rebalance is done every month depending on the market cap of the cryptocurrency.
CEO of Bitwise Asset Management, Hunter Horsley tweeted about Bitwise’s involvement with Abra-
— Hunter Horsley (@HHorsley) October 3, 2018
Bitwise had previously applied for an exchange-traded fund (ETF) in July. However, the approval is still pending.
Each BIT10 token will be based on a real-time price feed of the Bitwise 10 large Cap Crypto Index, with the positions held in multi-signature smart contracts on the Bitcoin or Litecoin Blockchain.