Australian DigitalX bitcoin fund’s returns have reached 99%

What’s new? Australian publicly traded digital asset management company DigitalX (DCC) announced that the annualized return on its bitcoin fund has reached 99%. The company’s product significantly outperformed its peers, posting a 12% gain in six months and a 30% gain in three years.

Material by Decrypt

What else is known? In question is the DigitalX Bitcoin Fund product, which is focused on wholesale investors. Launched in 2019, the fund implements a passive investment strategy (buy and hold BTC over the long term) and charges a 1,65% management fee.

In July this year, DigitalX also launched a spot bitcoin exchange-traded fund (ETF) under the ticker BTXX on Australia’s largest stock exchange, AXS. It offers a similar long-term investment strategy for retail investors.

The management fee is 0,49% and the fund’s returns are based on the CME CF Bitcoin Reference Rate (BRR) index of the Chicago Mercantile Exchange.

In its report to shareholders, DigitalX also reported a $614 000 year-over-year reduction in operating expenses due to a restructuring of its fund management team.

Another product of the company is the Digital Asset Fund, launched in 2018 for large investors. The fund’s portfolio consists of several cryptocurrencies, with 80% of the funds allocated to the most highly liquid assets from the top 20 by market capitalization that have stable growth indicators.

The fund can invest in the assets themselves as well as derivatives based on them. It charges a 1,5% management fee and 15% on returns.

A new report shows that the Digital Asset Fund has a five-year return of 526%, although there was a slight decline of 2,1% in Q3.

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Despite the strong performance, the company noted challenges in raising funds under management, citing a relatively small investor market compared to traditional investment products.

Back in June, the ASX listed the spot BTC ETF HODL from US investment firm VanEck. The company provides local investors access to bitcoins through a trust in the United States, while DigitalX’s BTXX does not utilize overseas intermediaries, potentially insulating Australian investors from US regulatory changes.

DigitalX shares under the ticker DCC are trading at $0,0363 on AXS, having lost 9,68% overnight. At the same time, the growth for the month amounted to 37%, and since the beginning of the year, securities have grown in price by 17%. The cost of BTXX shares is $19,79, and since the launch the growth has amounted to 61,1%.