Diversification, institutional storage and staking in one NZ investment
New Zealand company Crossgate Capital now combines three elements in one New Zealand investment: a professionally managed portfolio diversified well beyond Bitcoin; institutional-grade storage and staking of eligible assets through BitGo; and a familiar New Zealand share structure that forms part of an investor’s ordinary investment portfolio and estate.
Scott Lester, Director, Crossgate Capital, says that for a long time the choice for some New Zealand digital asset investors has been to invest in a few coins, look after storage yourself or hold it on an exchange.
"Our view is that the market has moved on. Some investors now want a diversified portfolio, they also want institutional-grade security, and increasingly they want their assets to be productive rather than idle. Crossgate Capital brings those three things together in one investment. We believe it's a compelling combination for New Zealand investors.”
DIVERSIFIED PORTFOLIO
Crossgate Capital has managed a diversified portfolio of digital assets on behalf of shareholders since 2019. The portfolio spans digital assets focused on smart-contract platforms, blockchain infrastructure, artificial intelligence, decentralised finance, financial services and more, with each asset selected as the company considers it has real-world utility.
Portfolio construction, ongoing research and rebalancing are handled by the Crossgate Capital team based in New Zealand. The company’s primary objective is long-term growth in the value of the portfolio, reflected in the Crossgate Capital share price.
INSTITUTIONAL STORAGE AND STAKING
The company’s digital assets are held on BitGo’s institutional-grade storage and staking platform. Eligible assets in the portfolio may now also be staked, committed to helping secure their blockchain networks. While the on-chain mechanics may differ by asset, the signing keys used to stake and unstake remain within BitGo's secure storage environment.
Where staking rewards are received, the Crossgate Capital Board may resolve to distribute some or all of that staking income to shareholders after fees and applicable tax. Investors are automatically included as opposed to having to opt in. Distributions are variable, not guaranteed, and declared at the Board’s discretion.
Lester says: “Staking is a reward mechanism native to digital assets. Certain digital assets reward the holders who commit them to help secure their networks. We consider that doing that properly requires institutional-grade infrastructure, and we already have that through BitGo.
"Adding staking to what our diversified portfolio does for shareholders is a natural next step, and it complements the long-term capital-growth objective that has always been the primary focus of the company," he says.
FAMILIAR SHARE STRUCTURE
The third element of the combination is the way investors hold their exposure. Crossgate Capital shares are a familiar New Zealand investment vehicle; they simply form part of an investor’s ordinary investment portfolio and estate, removing the need for investors to manage codes or digital wallets themselves.
This also simplifies estate planning, a recorded shareholding can be administered by executors through the usual channels, without the need to locate private keys or seed phrases that can otherwise leave directly held digital assets permanently inaccessible.
“Investors are increasingly discerning about how they access digital assets. We consider some investors want diversification, institutional-grade storage and the potential for distributions as well as growth. And some want it inside a familiar structure that fits with the rest of their financial life," Lester says.
"Crossgate Capital has been quietly building exactly that combination for seven years, and adding staking now brings the offer into its full form. Long-term capital growth remains our primary objective, and staking adds a second potential source of return alongside it. It provides an opportunity for New Zealanders who want exposure without the operational burden.”
The company’s Product Disclosure Statement sets out the staking arrangements, the risks involved and the way any potential distributions would work.
