Investors Can Soon Use Bitcoin to Buy Stocks
What sets cryptocurrencies apart is their ability to allow investors to buy assets with utmost convenience. Whereas, investing in traditional stocks mostly have requisites, for example, you need to be an accredited investor before investing in publicly-traded stocks.
The famous crypto investing app Abra has recently introduced a new way to use Bitcoin, involving stocks and ETF contracts. Such a way allows users to invest in stocks that otherwise might be unavailable to them.
Abra Enables Users to Use Bitcoin for Stock Investments
Users on crypto investment app, Abra, will soon be able to invest in “stocks, ETFs, commodities, cryptocurrencies, and fiat currencies,” with the help of one app.
The app is available in over 150 countries. The company plans to initiate with “popular US stocks and ETFs,” but will soon bring more global assets.
Abra charges no fees on trading traditional assets during 2019 for those that sign up for early access, and its new features require a minimum amount of $5. The company’s stock and ETFs will be offered via crypto-centralized contracts using Bitcoin.
Such a process requires an investor to own bitcoin to use as collateral and gain exposure to other assets such as stock, bond, ETF, and more. Once the contract is settled, the new price of the asset will be converted back into Bitcoin holdings.
Crypto Space Remains Positive About Bitcoin Involvement
Abra’s announcement sparked curiosity in the industry, with many discussing the implication of news on the crypto space and how it affects Bitcoin’s future.
The founder of Messari, Ryan Selkis, believes that the news is ‘much, much bigger news” than the Bitcoin lightning “torch” that ran across Twitter in the recent week, managing to attract the attention of Twitter and Square CEO, Jack Dorsey, too.
The CEO of Atlantic Financial, Bruce Fenton and Co-founder of the Wyoming Blockchain Coalition, Caitlin Long claims that the new is “huge.”
Long further said that it “expands the BTC owner universe” by making stocks available to people in countries with low economic activity who otherwise would not be able to purchase these traditional assets.