DigitalX sees 99% yearly gain in Bitcoin fund

Australian crypto fund manager DigitalX has reported a significant 99% annual gain for its Bitcoin (CRYPTO:BTC) fund, surpassing many competitors.

The announcement coincides with the firm's efforts to reduce operational costs by $950,000 (US$614,000) through restructuring its funds management team.

These changes aim to position DigitalX as a leader in the digital assets space, ready for what it views as an upcoming “mainstream moment” for the industry.

DigitalX offers two Bitcoin investment products: a Bitcoin fund for wholesale investors and a spot Bitcoin ETF (BTXX) for retail investors, launched on the Australian Securities Exchange (ASX) in July.

This ETF has risen from $20 (US$12.93) at launch to $31.09 (US$20.10), reflecting growing investor interest.

Unlike some other offerings, BTXX provides direct exposure to Bitcoin without reliance on U.S. intermediaries, potentially shielding Australian investors from external regulatory changes.

In its latest update, the company highlighted its Digital Asset Fund's performance, which showed a five-year gain of 526% despite a recent quarterly dip of 2.1%.

Bitcoin itself has surged 106% year-to-date, bolstered by new U.S. spot Bitcoin and Ethereum (CRYPTO:ETH) ETFs and political shifts following Donald Trump’s presidential win, which are expected to bring more regulatory clarity to the sector.

DigitalX Chair Toby Hicks emphasised the importance of maintaining operational sustainability to pursue the company’s strategic goals.

Despite positive fund performance, the company noted challenges in expanding its funds under management due to a smaller investor base compared to traditional investment products.

At the time of reporting, the Bitcoin price was $87,994.40.