Bitwise 10 Crypto Index Token (BIT10) gives everyday investors access to 10 cryptocurrencies with one simple investment, rebalanced monthly with a low $5 minimum and no fees
SAN FRANCISCO, Oct. 3, 2018 /PR Newswire/ -- Abra, the first and only all-in-one cryptocurrency wallet and exchange, today announced the ability for anyone, anywhere to invest in BIT10, a new token that tracks the professionally-managed Bitwise 10 Large Cap Crypto Index through a partnership with San Francisco-based Bitwise Asset Management, the leading provider of cryptocurrency indexes.
The Bitwise 10 Crypto Index Token (BIT10), listed exclusively on Abra, gives investors a simple way to get exposure to a set of the 10 largest assets that currently make up 80% of the cryptocurrency market. This set is screened according to Bitwise's rigorous and transparent index methodology, which ensures assets meet liquidity, security, and robustness requirements. Each month, the set of 10 coins is rebalanced by Bitwise, adding and removing coins to adjust to the constantly changing market.
Starting today, anyone around the world can invest in the new BIT10 token through the Abra app. There's a low $5 minimum, no restrictions on when you can buy or sell, and no fees on transactions. The BIT10 gives retail investors a simple way to benefit from the diversification and rebalancing of index investing.
"We created the BIT10 token to allow greater access to cryptocurrency investing by making the experience simple and accessible," said Bill Barhydt, Abra Founder and CEO. "Through partnerships like this one with Bitwise, Abra has created an unprecedented opportunity for the everyday person to start investing in crypto."
"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," said Bitwise CEO Hunter Horsley. "So far in the crypto space, index investing has only been available to institutions and accredited investors. We're thrilled for that to be changing today with the BIT10 on Abra, which is available to anyone."
How BIT10 Token Works
BIT10 is only accessible through the Abra app. The cost of each BIT10 token reflects the value of the 10 coins in the index. Like other cryptocurrencies, BIT10 can be purchased in fractional amounts, so investors can decide which amount works best for them and enjoy low minimum buy-ins ($5).
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 methodology of the index is publicly available to read and is actively maintained 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 methodology's 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.
Using Abra's successful stablecoin model on the backend, BIT10 positions are held in multi-signature smart contracts on the Bitcoin or Litecoin blockchain. 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 (again according to their published methodology) and the BIT10 investor will see the market movement up or down reflected in the price of their BIT10 tokens.
This method of using smart contracts to peg asset values to one another is a proven technology that is what currently powers the backend of the Abra app. Now, instead of trading fiat currency for cryptocurrency or for other synthetic currencies, BIT10 investors can use the same technology to easily invest in larger portions of the crypto market, all through one crypto asset.
Another big advantage to Abra's technology is that it is all based on a non-custodial wallet, which cuts out the need for third parties and gives the user more control.
How to Invest in BIT10
Getting started with Abra is easy. Simply download the app from the Google Play or Apple Store and set up an Abra wallet. From there, users can fund the wallet via bank transfer, credit card or other crypto assets to get started. Once funds have been added, start investing in BIT10 or any of Abra's 28 supported cryptos.
Abra is the first and only all-in-one global app offering a true crypto exchange and digital wallet —-making cryptocurrency investing simple. Abra empowers consumers to buy and hold 28 cryptocurrencies and 50 fiat currencies on a single app. Exchanges between multiple cryptocurrencies or fiat are quick, easy, and safe. Plus, with the Abra app, consumers can manage all crypto investments in one screen. Abra was founded in 2014 by Bill Barhydt, a veteran in the cryptocurrency space and an early Netscape employee. Investors include American Express Ventures, First Round Capital, HCM of Foxconn Group, Arbor Ventures, Lerer Hippeau, RRE Ventures, Silver8 Capital and others.
About Bitwise Asset Management
Founded in 2017, Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider crypto indexes and index funds. The team is based in San Francisco and combines modern software expertise with decades of asset management experience, coming from firms including Facebook, Wealthfront, BlackRock, JPMorgan, US Commodity Funds, Goldman Sachs, and ETF.com. Bitwise is backed by leading institutional investors and is a partner to high net worth individuals, financial advisors, family offices, multi-family offices, investment managers and institutions in navigating the crypto asset space. Bitwise develops funds, indexes, models, research, and other services. For more information, visit www.bitwiseinvestments.com
About Bitwise Index Services
Bitwise Index Services, LLC is a subsidiary of Bitwise Asset Management. Bitwise Index Services develops cryptocurrency indexes and conducts research in the area of cryptocurrency investing.
Bitwise makes no representation or warranty, express or implied, regarding the advisability of investing in Abra Cryptocurrency-based Software Contracts Product(s). Bitwise's only obligation is the licensing of the Index which is determined, composed and maintained by Bitwise without regard to any product offering. Bitwise disclaims liability to any party for any errors or omissions in the Index, for any inaccuracy in the data on which the Bitwise Products are based, and for any mistakes, errors, or omissions in the calculation and/or dissemination of the Abra Cryptocurrency-based Software Contracts Product(s) nor shall it be under any obligation to advise any person of any error therein. Bitwise and the Bitwise Indexes are the service marks of Bitwise and are being used with the permission of Bitwise.