Abra launched crypto tokenized investment fund. Abra is offering investors more exposure to the cryptocurrency market by launching a new token.
It is one of the crypto wallet providers.
The Bitwise 10 crypto Index Token (Bit10) will track the top ten cryptocurrencies. The Bitwise 10 Crypto Index Token is developed with Bitwise Asset Management. The token is built on bitcoin, investors can purchase and invest in all 10 cryptocurrencies at once. This is according to the press release.
By this, it will grant access for 80% of the cryptocurrency market at once. Presently the funds invest in bitcoin, ethereum, XRP, bitcoin cash , Eos, stellar, litecoin, dash, monero and Zcash. The users can deposit any of the cryptocurrencies in their Abra wallet and convert funds into the Bit10 token, CEO Bill Barhydt stated.
The token itself is not a fund. It works on a smart contract to pin user’s cryptocurrency or flat currency holdings to Bit10. The price will move according to the performance of those coins.
Its built on Bitwise index fund so one cannot exchange or trade directly. But the token is similar to ETF and it grants investors exposure to an index.
The company wants to grant ETF facility for the funds but its seeking permission from the US securities and exchange commission(SEC).
The Abra BIT10 token has the similar synthetic assets model as all of the other Abra tokens available in our app. The user will be holding his/her own key because tokens are in fully collateralize bitcoin multistage wallets. It shows that BIT10 is not security.