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The launch of Crossgate Capital Limited – New Zealand’s first regulated share offer in a company investing in bitcoin and other cryptocurrencies – opens the door to investors who want to invest in this emerging asset class but have previously been too intimidated by the complexity of the technology and various investment options.

Crossgate Capital Limited’s Scott Lester said today that BitGo Trust Company has been engaged to hold the majority of our crypto assets because the security of crypto assets should be a major focus for any investor who is investing in cryptocurrencies.

“BitGo is a leader in digital asset financial services, processing around 15 percent of all global bitcoin transactions and $US15 billion per month across all cryptocurrencies.

“Crossgate Capital has a fiduciary responsibility to look after our investors assets. BitGo provides 100 per cent cold storage technology in bank-grade vaults. With cold storage, the assets are stored on a platform that is not connected to the internet, thereby, protecting the wallet from unauthorised access and cyber hacks – BitGo deliver institutional-grade, multi-signature security.”

Lester said that Crossgate Capital is the first and only cryptocurrency equity offer of its kind in the New Zealand market.

“It gives investors the opportunity to invest in digital assets without having to learn about the complicated nature of the technology or spend a lot of time keeping up to date with the market – removing the complications to invest is what we are all about.

“It’s a familiar way for people to invest – in bitcoin and other cryptocurrencies – through shares,” Lester said.

“The leadership team is highly focused on strong governance, compliance and ensuring transparency and open communication,” Lester said.Crossgate Capital actively selects a portfolio of crypto assets and continually researches and monitors the performance of each asset.

“Selection is based on fundamentals, specialist advice and strong debate – not retail hype. A range of financial and non-financial indicators are considered during the investment process. For example, use case, number of transactions, development activity and number of wallets are just some of the indicators that are analysed on an ongoing basis.”

Lester said Crossgate Capital is only permitted to invest in an asset if it has a market capitalization of at least NZD $500 million – which are the more established assets.

“This is part of Crossgate Capital’s risk management approach. Notwithstanding, cryptocurrency has a higher risk profile than other investments and therefore this asset class is not appropriate for all investors.

“However, for those investors who understand the risks, Crossgate Capital provides an easy on ramp to investing.” Lester says cryptocurrencies appear to be entering the mainstream as it was recently announced that the first U.S. Pension Fund would be investing in crypto assets.

“This follows on the heels of the endowments of Harvard, Stanford and MIT announcing investments into at least one cryptocurrency fund. The new Samsung smartphone, the Galaxy S10, will also include storage for private cryptocurrency keys.

“We consider that crypto assets are now part of the financial landscape and therefore have the potential to be an accepted asset class in an investor’s portfolio, alongside equities and debt,” said Lester.

Until now the main barriers keeping investors out of cryptocurrencies have been education and security concerns.

“For many investors, the question is where do you start if you decide that investing in cryptocurrencies is for you? Crossgate Capital provides that answer. We consider that in a world where growth is increasingly digital, digital assets will increase in relevance,” Lester said.

Photo: Stanislaw Zarychta

