Abra, the crypto wallet provider, is launching its own token now as part of a larger effort to offer investors more exposure to the crypto market.

The token will be called Bitwise 10 Crypto Index Token (Bit10) and will be developed in a joint partnership with Bitwise Asset Management. According to reports, it will track the top 10 cryptos by market capitalization and be rebalanced monthly.

The token will be built using the Bitcoin structure and investors can purchase it from Abra as a way to basically invest in the top 10 cryptos at once. This grants the investors access to 80% of the crypto market.

The CEO of Abra, Bill Barhydt, has affirmed that, at the start, the fund will invest in Bitcoin, Ethereum, XRP, Bitcoin Cash, EOS, Stellar, Litecoin, DASH, Monero and Zcash. Users will be able to deposit BTC, LTC, BCH or fiat currency and convert it to Bit10 tokens.

While the token will not be a fund, it will be Bitcoin-based but collateralized and the amount of BTC that the customer will hold will be equal to the index. Abra will be the counterparty to the contract and will hedge away counterparty risks on the contracts.

Abra’s token will use smart contracts that will peg the crypto to the Bit10 index. While built on the Bitwise index fund, it will not be an exchange-traded traded fund (ETF), though, only will work in a similar manner.

Bitwise does intend to create its ETF, however, which will be based in the index fund. The company is currently looking for approval of the U. S. Securities and Exchange Commission (SEC) to do it. As Bit10 tokens are not an actual ETF, they do not require the approval of the SEC.

The company has explained that the token is not a security because it uses the same synthetic asset model that the other Abra tokens do on the app and they are fully collateralized while the user holds their own keys. Because of this, the asset is not considered a security.

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