On October 3, Abra, the app offering a crypto exchange and digital wallet in one place, announced 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.
According to the announcement, the BIT10 gives retail investors a simple way to benefit from the diversification and rebalancing of index investing. Now, by holding one asset, Abra users can gain exposure to 80% of the crypto market.
The index will track the price of the 10 largest cryptocurrencies by market cap that also meet several criteria in Bitwise’s rigorous and transparent index methodology. To be included in the BIT10, crypto assets first need to meet liquidity, security, and robustness requirements. Each month, the set of 10 coins is rebalanced by Bitwise, adding, removing, or adjusting weights of coins to adjust to the constantly changing market.
“Now, with BIT10, anyone around the world can invest in a crypto index on the Abra app — with a $5 minimum investment, no restrictions on entry or exit timing, and no fees”, – reads the announcement.
The price of each BIT10 token is based on a real-time price feed of the Bitwise 10 Large Cap Crypto Index provided by Bitwise.
The composition of the assets in the index, and subsequently the exposure of the BIT10, is rebalanced on a monthly basis in accordance with the Bitwise Crypto Index Methodology rules which include a variety of requirements related to liquidity, security, and trading volume. The composition of BIT10 will be published on Abra and will reflect the monthly rebalancing update of the index by Bitwise.
Once invested, Abra and the user enter 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 moves up or down reflected in the price of their BIT10 tokens.
On September 4, Abra announced its support for Single Euro Payment Area (SEPA) bank accounts. The new functionality enables every user in Europe the ability to fund their Abra wallet using their European bank account and then use the funds to invest in any of the 28 cryptocurrencies supported on Abra.