The big news during the quarter was the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). We now look forward to the next milestone event, which is the upcoming Bitcoin halving event scheduled to take place, on or about, 19th April. In regards to our second largest asset, Ethereum,  we paid close attention to the Cancun-Deneb (Dencun) upgrade.

The US securities regulator approved the first US listed exchange traded funds (ETF) to track Bitcoin. The excitement in the cryptocurrency market isn’t limited to Bitcoin. Also on the horizon is the potential for a spot Ethereum ETF. Whilst we are understandably bullish on Bitcoin and Ethereum and consider them a core part of our portfolio, in such a fast moving sector we believe a well constructed diversified portfolio is the best way to invest in this market. As we start 2024, we are pleased to announce the inclusion of Chiliz in our portfolio.

Thank you to those investors who attended the Crossgate Capital Annual Shareholder meeting on the 26th September 2023. In this report, we will cover some of the main talking points at the meeting, discuss BlackRock’s recent venture into the cryptocurrency market and review a number of crypto assets on our watchlist. While Bitcoin may currently have the headlines, during the quarter we review the performance of Chainlink, Tron and Ripple. 

In New Zealand, the Finance and Expenditure Committee has conducted an inquiry into the current and future nature, impact, and risks of cryptocurrencies, and recommends that the Government take note of and consider each of the following recommendations made by the independent advisers. In regards to policy settings the committee recommends that the Government adopt policy settings to encourage  developments in digital assets and blockchain in New Zealand.

Over the last decade, the world of cryptocurrencies has seen amazing development and innovation. Governments and regulatory bodies are attempting to build comprehensive frameworks to oversee the usage of digital assets as they gain popularity and general acceptance. The EU recently passed MICA (Markets in Crypto-assets). The package aims to support innovation and the uptake of new financial technologies while providing for an appropriate level of consumer and investor protection. 

In April, the Ethereum Shanghai upgrade was the final step in Ethereum’s transition from a proof of work (PoW) consensus mechanism to a less energy-intensive proof of stake (PoS) consensus mechanism. We also we take a deep dive into the development of the Bitcoin Lightning Network, which runs on top of the Bitcoin blockchain and pencil in the dates for the next Litecoin halving and Bitcoin halving, which is also known as “the halvening".

Prior years saw a number of assets secure approval which expanded our portfolio. Assets such as Polakdot, Aave, Compound and Chainlink all made the grade. The watchlist during 2022 included a number of assets such as Solana, Polygon, Avalanche, Decentraland, The Sandbox, Axie Infinity, Chiliz, Fantom and Enjin Coin. 

With Crossgate Capital you can make one-off investments and you also have the option of setting up a regular investment on a fortnight or monthly basis. Our automatic reinvestment option continues to prove popular as an increasing number of investors elect to use this feature. Regular investing makes it easier to achieve your investment goals with less time and effort and allows dollar-cost averaging into the market.  

One of the reasons why we only invest in the more mature stable cryptocurrencies is that during a crypto winter they have the ability to make progress during volatile times.  In September, Ethereum transitioned to Proof-of-Stake (PoS) marking a significant milestone in a multi year long effort to increase the efficiency and scalability of the network. Also in September, the Vasil Hard Fork upgrade of the Cardano Blockchain completed its first phase.

Some of today's leading crypto projects were born during the 2018 "crypto winter." Our objective is to invest in projects which not only will survive bear markets but use this downturn productively and continue on their development path. During these period's, there is less noise to distract you from project development with the aim of enhancing scalability, user experience and other characteristics which can deliver long term success

Customers who transfer their crypto into PayPal can extend the utility of their crypto. They will instantaneously take the crypto and translate it in to fiat which can be used at one of their millions of merchants. Paypal reported that they are signalling their commitment to responsible innovation and expanding the accessibility and utility of digital currencies while fully complying with regulatory guidelines and best practices. 

As reported by the NZ Herald, luxury fashion lovers will soon be able to shop in Gucci stores with cryptocurrency.The announcement comes as the retailer seeks to tap into the younger market and establish trust with those who have taken to buying, selling and holding digital currencies.

This year the stand out performer in our portfolio has been Ethereum. Investors await a massive upgrade that will change its infrastructure. In what’s called the “merge,” Ethereum plans to shift from a proof-of-work model to proof of stake. Though the timeline isn’t confirmed yet, developers predict that the merge may happen this year.

U.S. Treasury Secretary Janet Yellen speech noted that crypto asset regulations should support responsible innovation while managing risks, sticking to the contours of a recent White House executive order that was well-received by the crypto market. Referencing the onset of the Internet in the early 1990s as an analogy for crypto, Yellen said while digital assets may be relatively new, they are part of the larger trend of the digitization of finance that has been in the making for decades.

Biden's order will require the Treasury Department, the Commerce Department and other key agencies to prepare reports on "the future of money" and the role cryptocurrencies will play. As reported by Reuters, analysts view the long-awaited executive order as an acknowledgement of the growing importance of cryptocurrencies and their potential consequences for the U.S. and global financial systems.

The business world is facing an influx of innovation: changing consumer preferences, rapid digital transformation and geopolitical shifts. To help businesses evolve and supercharge their growth enterprise-wide, Mastercard announced that it is expanding its preeminent payments-focused consulting service with new practices dedicated to crypto.

Our performance has benefitted from investing in a well constructed diversified portfolio as opposed to investing in just one cryptocurrency, such as Bitcoin or Ethereum. While Bitcoin and Ethereum form a core part of our portfolio we have greater breadth by investing across 12 leading cryptocurrencies, which provides us exposure to different segments of this asset class such as DeFi.  

The 2021 Chainalysis NFT Market report has just been released. Non-fungible tokens (NFTs) have skyrocketed in popularity over the last year. Chainalysis reports that so far in 2021, users have sent at least USD $26.9 billion worth of cryptocurrency to ERC-721 and ERC-1155 contracts, the two types of Ethereum smart contracts associated with NFT marketplaces and collections.

The 2021 Chainalysis Global Crypto Adoption Index has just been released. This marks the second iteration to measure grassroots cryptocurrency adoption around the globe, after a year of huge growth for cryptocurrency markets and increased attention for the industry. The goal of the index is to provide an objective measure of which countries have the highest levels of cryptocurrency adoption

Whānau Āwhina Plunket, which provides Aotearoa’s largest support service for tamariki under five and their whānau, is trialling cryptocurrency donations as it seeks to innovate and supplement the more traditional sources of donations, some of which have been impacted by the ongoing pandemic.

Whilst we are understandably bullish on Bitcoin and Ethereum and consider them a core part of a portfolio, in such a fast moving sector we consider a diversified portfolio is the best way to invest in this market. Investing in cryptocurrencies is an investment in technology. We therefore carefully monitor the assets to assess the level of development activity and its ability to deliver on its real world use case.

While Bitcoin is the largest and most well-known cryptocurrency, just like investing in the share market some investors consider a diversified portfolio is the optimum approach when investing in this sector. This limits exposure to just Bitcoin or Ethereum or any particular cryptocurrency and enables investors to benefit from the potential growth experienced by other cryptocurrencies.

Texas has recently implemented two bills numbered 4474 and 1576 on September 1st. These two bills are going to boost the adoption of cryptocurrencies in the state. They were passed back in May, signed by the state legislature, and then signed by the Governor in July. Texas has always been a crypto-friendly state. They have become the fourth state in the US to bring commercial laws for cryptocurrencies after Wyoming and two others.

Walmart is hiring a cryptocurrency expert to potentially expand its virtual payment options as a growing number of Fortune 500 companies warm up to digital currencies. The retailer’s crypto expansion comes just weeks after Amazon advertised a similar role seeking a “digital currency and blockchain product lead” to join their payments team.  

Bitcoin retraced earlier gains, in the payments category Ripple had a positive quarter.  The other two strong performers for the quarter, were Ethereum and Cardano (Infrastructure Category).  Ethereum implemented the Berlin upgrade on April 15 and the upcoming EIP-1559 objective is to address the challenge of  high transaction fees.   Cardano provided a clearer roadmap for its upcoming Alonzo hardfork

Financial services for cryptocurrency holders have been growing as a subset of the fintech industry for years. 
A 401(k) provider called "ForUsAll' is now allowing participants to allocate up to 5% of their retirement funds into cryptocurrency. 

The 2021 Annual Review includes audited financial statements and provides an update on the performance of Crossgate Capital and includes key announcements.
When Crossgate Capital launched we stated our belief that “cryptocurrencies now form part of the financial landscape and has the potential to be an accepted asset class”.

While Bitcoin retraced earlier gains, in the payments category Ripple had a positive quarter.  The other two strong performers for the quarter, were Ethereum and Cardano (Infrastructure Category).  Ethereum implemented the Berlin upgrade on April 15 and the upcoming EIP-1559 objective is to address the challenge of  high transaction fees.   

If you would like to learn more about Crossgate Capital, watch Kalkine's media video report. Crossgate Capital was founded in order to provide investors a simple way to buy bitcoin and other cryptocurrencies. As an established and trusted New Zealand company we provide a familiar and secure way to invest in cryptocurrencies. 

MasterCard has just released an announcement; 
 

"We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network"

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Tesla, the electric car company run by the world’s richest person, Elon Musk, revealed on Monday that it had bought $1.5bn in Bitcoin and said it might soon accept payment in the cryptocurrency.

The latest Investor Report, for the quarter ending December 2020, is now available.

We invite you take advantage of our expertise and experience.

"Considering how big the financial investment into gold is, a crowding out of gold as an 'alternative' currency implies big upside for Bitcoin over the long term," the JPMorgan analysts said.

Recently, Bitcoin has been leaving a string of broken records in its wake after passing the psychologically key $20,000 mark for the first time on Dec. 16. Institutional investors are perceived to be driving this record-setting run.

Akin to investing in any asset class such as stocks, property, fixed income, cryptocurrency investing has its own challenges. Cryptocurrencies are an emerging asset class and have their own specific set of challenges that amplifies for people who are not tech-savvy or have busy schedules.

Against a macro backdrop of never before seen levels of financial stimulus and low or negative interest rates, some investors consider that a scarce, digital form of money makes sense, especially in the current environment.

Crossgate Capital makes the investing journey easier for investors by assisting them in investing in bitcoin and cryptocurrencies.  Crossgate Capital has experienced directors who have a resume that involves both private and public directorships.

Crossgate Capital’s investment philosophy is that cryptocurrencies now form part of the financial landscape now and has the capability to be an accepted asset class in the portfolio of an investor alongside equities and debt.

Crossgate Capital paves way for investors to make an investment in bitcoin and cryptocurrency. Crossgate Capital, a specialist investor in bitcoin and cryptocurrency, offers investment solutions to overcome the challenges that arise from investing in crypto assets.

PayPal is launching its own cryptocurrency service, The online payments company declared adding crypto was a significant milestone on the path to mainstream adoption of cryptocurrencies such as bitcoin.  

Not all cryptocurrencies are created equal, which is evident when you look at the cryptocurrencies which dominated the leader board in 2013. While the Top 10 cryptocurrencies in 2013 were receiving a lot of attention, the majority of them no longer feature in the headlines.

During June, it was reported that over 2,000 Coca-Cola vending machines in Australia and New Zealand have started accepting Bitcoin, thanks to an agreement between Coca-Cola Amatil and Centrapay.

Investing in any asset class can be challenging. That is why for many investors they remove the ‘pain points’ of investing individually by engaging experienced, qualified professionals who focus on investment management.

We tend to store items in cold storage that we want to preserve for the long term, such as food or medicines.  Similarly, investors want to protect their cryptocurrencies. One of the best methods to avoid losing your Bitcoin, Ethereum or other cryptocurrencies is by storing your cryptocurrencies in cold storage.

Even with increased public awareness and media attention around bitcoin, an event is pending that is attracting minimal headlines - the next Bitcoin Halving (also termed "Halvening"). The next Halving will be Bitcoin’s third and will take place around May 2020.

While the light shines brightly on the price movements of cryptocurrencies the technology that underpins Bitcoin is in the spotlight. Chinese President Xi Jinping recently announced that China should seize the opportunities afforded by blockchain.

There is increasing regulation in New Zealand and across the globe to promote and facilitate the development of fair, efficient and transparent financial markets. Both institutional and retail investors gain assurance investing in regulated products.

New Zealand’s tax office, the Inland Revenue Department (IRD), has made it legal to receive salaries in cryptocurrency, and be taxed accordingly.

In its August bulletin, the agency published a new ruling under the Income Tax Act (in relation to section RD 3) that states that an employee can be paid salaries in crypto.

Like any astute and practical investor, you want to know how your investments are going. It sounds easy and common-sense but invariably things get put to one side as time is spent at work, with friends and family. As the saying goes, ‘so much to do, so little time to do it’.

For some cryptocurrency investors, their preferred investment approach is to invest on a regular basis, not to try and buy the dips. For a highly volatile market such as cryptocurrencies, this method known as Dollar Cost Averaging (DCA), means that investors are investing in the overall long-term trend of the market.

Now that major United States retailers like Bed Bath & Beyond and Barnes & Noble have started accepting cryptocurrencies as payment, a New Zealand investment firm says it’s time to view the virtual currency as a long-term investment rather than a speculative quick buck.

The International Monetary Fund (IMF) official Twitter account ran a poll on the 10th April, asking “How do you think you will be paying for lunch in 5 years?” 

Institutional investors are finding appeal in digital assets and many are looking to invest more in digital assets over the next five years, according to new research from Fidelity Investments.

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There are significant barriers to entry for those looking to invest in cryptocurrencies. It can be challenging to work through the complexity of investing in this asset class – buying bitcoin and other cryptocurrencies, processing transactions and ensuring that the crypto assets are safe and secure.

New Zealand’s first regulated share offer for a company investing in cryptocurrencies says it has focussed investment primarily in the more established cryptocurrencies as opposed to the long tail assets.

Crossgate Capital launches an equity share offer. 
Established in 2018, Crossgate Capital is a New Zealand registered company operated by a commercially experienced management and investment team with a singular purpose of investing in digital assets.

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.

According to a Gartner report titled “Forecast: Blockchain Business Value, Worldwide, 2017-2030”, the potential value of blockchain or distributed ledger technology [DLT] to the enterprise is expected to grow to more than $360 billion by 2026, and subsequently exceed $3.1 trillion by 2030.

The new Samsung smartphone, the Galaxy S10, will include storage for private cryptocurrency keys, according to an official press release
on February. 20

First U.S. Pension Funds Take the Plunge on Crypto Investing. 

Morgan Creek Digital has scored what it says is probably the first investment in the crypto asset universe from a U.S. pension fund. 

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​Not many people would have imagined  how the advent of the internet would change the world.  There have been many succesful innovations which have solved Gaps. Blockchain could potentially solve the next big Gap - "The Trust Gap".

With the launch of OhioCrypto.com, Ohio will become the first state in the nation to accept tax payments using cryptocurrency.  
“We are proud to make Ohio the first state in the nation to accept tax payments via cryptocurrency,” said Ohio Treasurer Josh Mandel. 

Fidelity will provide cryptocurrency custody and trading services for enterprise clients. Fidelity is one of the five largest financial services providers in the world, some $7.2 trillion in client assets.

Hot on the heels of Yale's announcement, the endowments of  Harvard,Stanford, Dartmouth, MIT and the University of North Carolina have announced investments into at least one cryptocurrency fund.  ​ 

Simplifying The Complex World Of Cryptocurrency Investing.
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