NZ's first regulated share offer for cryptocurrency investor
New Zealand’s first regulated share offer for a company investing in cryptocurrencies launches
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 per cent 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 – BitGodeliver 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 capitalisation 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.
For more information visit www.crossgatecapital.co.nz
ABOUT CROSSGATE CAPITAL
LIMITED
Crossgate was founded to provide investors simple access to cryptocurrency investments through a traditional share offering.
Crossgate Capital’s digital assets are secured through institutional grade cryptocurrency security provided by BitGo Trust Company, which provides clients with advanced cold storage via bank-grade Class III vaults in a secure offline environment.
Crossgate Capital Limited is a registered financial service provider (FSP number: FSP649949), allowing it to participate in an FMC offer as an issuer or offeror of financial products.
The Product Disclosure Statement (PDS) for the offer is available on the website and on request. The PDS and other useful information is also available atwww.business.govt.nz/disclose, offer number 12554 or visit the visit the Sorted Smart Investor site and review the Crossgate Capital offer documents.
Crossgate Capital is a member of a Financial Services Complaints Limited, a dispute resolution scheme. Crossgate Capital’s Share Register is administered by Link Market Services.