A new coin to the crypto world, it is BIT10. Just another coin but it is from a digital currency wallet and exchange, Abra. This coin aim to tracks the bitwise 10 Large Cap crypto Index, as per the report on Wednesday. It has listed exclusively on Abra.
The Bitwise 10 Large Cap Crypto Index was developed by Bitwise Asset Managemen. The index tracks the ten largest cryptocurrencies by market capitalization, currently representing 80 percent of the total crypto market capitalization. As per the announcement, any investor is now able to acquire the BIT10 token through the Abra app, with a $5 minimum investment.
Hunter Horsley, the CEO at Bitwise, said “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. So far in the crypto space, index investing has only been available to institutions and accredited investors.”
The cost of each BIT10 token reflects the value of 10 coins in the index. The press release further explains the operational principle that “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.”
Recently last month, the direct purchase and sale of cryptocurrencies for European bank accounts were enabled by Abra. So, the customers can transfer euros to their wallet which turns into 28 cryptocurrencies, the other national currencies also can transfer directly to the wallet.