InvestX Allows Canadians to Buy Into Private Markets with Crypto

January 19, 2018

A Canadian fund has just given investors a new way to spend their digital currency.

InvestX has announced that they have launched a first-of-its-kind growth equity fund that will accept both traditional and digital currencies. This means accredited investors from the U.S., Canada and abroad will be able to use bitcoin and other cryptocurrencies to invest.

The announcement of this fund is important, especially for crypto holders, as it gives them an option to de-risk their portfolio and transfer some of their gains by diversifying into pre_IPO companies around the globe. Many crypto investors have seen significant gains so they can use some of that capital to then re-invest outside of the decentralized market, removing some of the risk associated with keeping funds tied to cryptocurrency.

“We recognize that this is an unprecedented time for cryptocurrency,” said Marcus New, founder and CEO of InvestX. “At the same time, we also recognize the inherent risk that exists in the space, particularly for those investors with portfolios weighing heavily, and in some cases, solely in digital currency. Our aim is to provide access to additional investment opportunities for those with crypto holdings, while at the same time, providing these globally-minded investors with preferential access to positions in pre-IPO global companies.”

InvestX provides advisers and their clients with access to investments in later-stage private companies. Names on the list have included massive tech brands like Uber, Lyft, Spotify and Dropbox. On top of individual offerings like these, there is an InvestX four-year fund that provides even more diversification that invests in private unicorns with evidence of a liquidity event within 12 to 36 months.

Many realize that crypto is not exactly a stable market. The price of bitcoin has risen and fallen up to 30 per cent in a single day, and though many have made money (and still likely can) off the swinging rates, it is very hard to see any kind of stability. InvestX is offering those with gains in the crypto sector to transfer into a much more stable—albeit, slightly less moonshot-esque—market of private pre-IPO companies. Investing in bigger tech companies may not result in daily 30 per cent gains, but it also means avoiding massive market dips as well.

The online InvestX platform also makes putting money into the fund fairly simple. For crypto owners, they can transfer directly from their own wallets into the InvestX wallet without the added step of transferring to fiat. The InvestX platform does that for the investor, as crypto is converted at the spot rate using institutional FX pricing.

InvestX is a Vancouver-based financial disruptor that offers accredited investors and family offices the chance to access investments in the world’s biggest late-stage private companies. Just keep in mind that accredited investors in Canada are a specific type of investor with certain incomes or designations. Some provinces allow non-accredited investors to invest in private markets but under very specified limits.