Abra Launched a Token Tied to Bitwise Cryptocurrency Fund
Abra wallet’s provider launched a new token based on cryptocurrency assets portfolio. Bitwise 10 Crypto Index Token (Bit10) is based on a portfolio consisting of TOP-10 cryptocurrencies in terms of market cap. The assets’ structure in the wallet is rebalanced monthly. The index was developed by Bitwise Asset Management company last year.
As it is noted in the press release, the users will be able to buy Bit10 token instead on investing in various assets. This will give an opportunity to invest in a portfolio consisting of assets whose capitalization covers 75% of the market.
According to Abra CEO Bill Barhydt, the fund which the token is tied to invests in bitcoin, Ethereum, XRP, Bitcoin Cash, EOS, Stellar, Litecoin, DASH, Monero and Zcash. The users can deposit fiat money or cryptocurrencies to Abra wallet and then convert them to Bit10. Barhydt highlights that the token itself is not a fund.
The token users smart contracts which link user’s cryptocurrencies or fiat money to Bit10 index’s digital assets, and the latter depends on the price dynamics of assets it consists of.
Abra representatives highlight that although the token is based on Bitwise index fund, it isn’t an exchange traded fund (ETF), it means that it doesn’t require regulators’ improvement to be launched.
At the same time, the company which has created Bitwise index fund is still intended to launch cryptocurrency-based ETF. The company’s representatives note that at the moment Bitwise is waiting for the SEC’s decision concerning its application.
BIT10 token is not a security, adds Barhydt. .
It is to be recalled that Abra started supporting SEPA payments last month, it provides the app’s users with an opportunity to buy cryptocurrency for Euro.