One of the leading cryptocurrency wallets and exchanges has unveiled support for a new token aimed at tracking the Bitwise 10 Large Cap Crypto Index. Abra has confirmed its users can start to invest in the BIT10 token that will automatically give beginner and intermediate crypto investors increased exposure to the market.
In partnership with crypto indexes platform Bitwise Asset Management, Abra will allow its users to invest in the ten largest cryptocurrencies by market capitalisation via the BIT10 token. As of the beginning of this month, the BIT10 token has been available for users to buy, with token positions stored in smart contracts on the Bitcoin or Litecoin blockchain.
At the time of writing, the digital assets within the BIT10 token equate to almost 80% of the entire market cap of the cryptocurrency industry, so it’s a great opportunity for crypto newcomers to invest in an instantly diversified portfolio. The cost of each BIT10 token will depend on the real-time value of the Bitwise 10 Large Cap Crypto Index, although Abra has specified a $5 minimum deposit. There are no restrictions on when investors can buy or sell their BIT10 tokens and there are zero fees on all transactions.
Instead of buying Bitcoin or investing in Ethereum separately, Hunter Horsley, CEO of Bitwise, believes that crypto index investing is perfect for those dipping their toes into the water of cryptocurrencies. Mr Horsley said that the BIT10 token will allow newcomers to invest “without having to constantly monitor news and try to predict which assets will be most valuable”.
Assets within the Bitwise 10 Large Cap Crypto Index are rebalanced every month, based on liquidity, security and trading volume. This will save investors a considerable amount of time searching for more suitable altcoins to invest in. Instead, the top ten digital assets will always be owned by BIT10 token owners. Bill Barhydt, CEO and founder of Abra, hopes that the launch of the BIT10 token will provide “greater access to cryptocurrency investing” due to the “simple and accessible” nature of crypto index investing.
The news of Abra’s BIT10 token comes hot off the back of Circle Invest’s decision to launch three curated ‘collections’ of cryptocurrencies for people to invest in. The ‘Platforms, ‘Privacy’ and ‘Payments’ collections have been created to allow individuals to buy cryptocurrencies that are best aligned with their passion for either digital payments, online privacy and anonymity or flexible, open-source applications.
These collections were curated following the success of Circle Invest’s “Buy the Market” functionality, which 30% of its investors used to buy small amounts of all of the leading cryptocurrencies in a similar method to the BIT10 token. The amount purchased of each leading asset was based on the size of the coin’s official market cap. Bundled crypto index funding is certainly being marketed as a mainstream ‘starter pack’, providing a direct entry route to the cryptocurrency industry.