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Bitwise’s CEO, Mr. Hunter Horsley on Wednesday, 3rd October 2018 during an interview with Crypto Bites, introduced “The Bitwise 10 Crypto Index Token (BIT10)”.
Speaking on the interview, Mr. Hunter Horsley said, “In our society today, anyone around the world willing to invest in cryptocurrency can do so using the new Bitwise 10 Crypto Index Token (BIT10) via the Abra’s app”.
“The new token (BIT10) is a new method of crypto diversification and rebalancing of index investing, which gives investors broader access to the crypto world and an easy way to benefit from the diversification,” he added.
The new token (BIT10) is designed to track the expertly-managed Bitwise 10 Large-Cap Crypto Index via a partnership with San Francisco-based Bitwise Asset Management, the world leading providers of cryptocurrency indexes.
“Today, with BIT10, investors can easily invest on the ten largest cryptocurrencies in the world via the Abra app with no restrictions, no exit timing, and no hidden charges,” he said.
The index has the capacity to track the prices of the ten largest cryptocurrencies by market cap and will ultimately, meet Bitwise’s rigorous and transparent index methodology. More so, the BIT10 crypto assets will meet the latest security upgrade, liquidity, and robustness requirements. Notwithstanding, each month, the set of 10 coins is remitted by Bitwise, adding, and adjusting weights of coins to meet the constantly changing market. The BIT10 is hinged on the typical model of index investment first used in the 1970’s.
According to Mr. Hunter, “today, index funds exist in almost every sector of the economy and the globe at large… rather than having to decide which asset to purchase, investors can readily buy a bounty of assets which enhance upside potential and reduce risk.”
Index funding is easy to use and convenient, which makes it attractive to investors considering their diversification and low cost, they have become a much-needed element for most investment portfolio.
The primary reason behind the BIT10 technology is that, like stock market index, it widens access to cryptocurrency investment by making it easy, simplifying the experience, and bettering the exposure to a large part of the crypto market. It reduces entry problems.
The value of each BIT10 token is hinged on a real-time price feed of the Bitwise 10 Large Cap Crypto Index provided by Bitwise. Bitwise actively maintains the methodology and BIT10 token value is readily accessible.
“By using Abra’s stable coin to invest, the investor and Abra enter into a smart contract that effectively determines the equivalent of BIT10 tokens owned by the investor,” Hunter concluded.
Abra has the gateway to get the real-time price feed directly from Bitwise Asset Management and the BIT10 investor will observe the market as it moves up and down reflecting the price of their BIT10 tokens.
This smart contracts methodology is another proven technology that powers the backend of the Abra app. Instead of flat trading currency for the cryptocurrency, investors can use the BIT10 token, which gives them more extensive access to the crypto market, by holding one asset. More so, using Abra’s technology gives its user more control and better experience.