Abra launched a token based on Bitwise
The wallet provider Abra has launched a new token based on a portfolio of cryptocurrency assets.
Introducing … the world's first crypto index – accessible to everyone, everywhere https://t.co/NLMoONjDpQ pic.twitter.com/PO11kkWgCk
– Abra (@AbraGlobal) 3 December 2018 p.
Bitwise 10 Crypto Index Token (Bit10) is based on a portfolio of top 10 cryptocurrencies by market capitalization. The structure of assets in the portfolio is rebalanced every month. The index was developed by Bitwise Asset Management headed by Naval Ravikant last year.
The press release notes that instead of investing in different assets separately, users can buy Bit10 token. This makes it possible to actually invest in a portfolio of assets whose capitalization covers 85% of the market.
According to Abra’s CEO Bill Barhidt, the underlying token fund invests in Bitcoin, Ethereum, XRP, Bitcoin Cash, EOS, Stellar, Litecoin, DASH, Monero and Zcash. Users can deposit fiat money or cryptocurrency on an Abra wallet, and then convert the funds into Bit10 tokens. At the same time, Barhidt emphasizes that the token itself is not a foundation.
“Bit10 token is 100% bitcoin-based. This is one bitcoin-secured multi-signature wallet. The number of bitcoins stored by the client on the token's wallet automatically displays the value of the Bit10 index in dollar terms. Abra is one of the parties to the contract that hedges all counterparty risks. This is how the rest of Abra's synthetic assets work , ”added Barhidt.
The token is based on smart contracts linking the user's cryptocurrency or fiat money to the digital assets of the Bit10 index. The value of the latter, in turn, depends on the price dynamics of the underlying assets.
Representatives of Abra stressed that although the token is based on the Bitwise index fund, it is not an exchange traded fund (ETF), and therefore does not require approval for launch by regulators.
At the same time, Bitwise, which created the index fund, still intends to launch a cryptocurrency-based ETF. Representatives of the company say that Bitwise is currently awaiting an appropriate decision on its application from the US Securities and Exchange Commission.
“The BIT10 token is not a valuable paper ,” concluded Barhidt.
Recall that last month Abra added support for SEPA payments , which allows application users to purchase cryptocurrency for euros.
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