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Australian crypto fund manager DigitalX is stepping up as a leader in digital assets, preparing for what it believes is the crypto industry’s “mainstream moment.” The company sees this as the result of key breakthroughs and shifting global politics, especially in the U.S.
On Thursday, DigitalX announced major operational changes, including cutting $950,000 (US$614,000) in yearly costs by restructuring its funds management team.
Its Bitcoin fund has delivered impressive returns, with a 99% gain over the past year. This performance has outpaced competitors, with additional growth of 12% over six months and 30% over three years. The company’s Digital Asset Fund has also performed well, showing a five-year return of over 526%. However, it reported a small 2.1% decline in the past quarter, according to the latest shareholder update.
The crypto market has seen strong growth this year. Bitcoin has risen 106%, reaching $87,500. The industry’s momentum has been boosted by the U.S. launch of spot Bitcoin and Ethereum ETFs, along with a Republican presidential win, which many see as paving the way for clearer digital asset regulations.
Bitcoin Investment Products Offered by DigitalX
DigitalX has introduced two Bitcoin investment options: a Bitcoin Fund for wholesale investors and a Bitcoin ETF (BTXX) for retail investors. Each product offers exposure to Bitcoin but uses different structures and access methods.
DigitalX’s spot Bitcoin ETF, listed on the Australian Securities Exchange (ASX) in July, joins other crypto ETFs in the country, such as VanEck’s VBTC, also listed on the ASX. Additional options include Global X 21Shares’ EBTC and Monochrome’s IBTC, both traded on Cboe Australia.
Despite recent restructuring, the Perth-based fund manager emphasizes its commitment to a “safe pair of hands” approach for client investments. Unlike VanEck’s VBTC, which relies on a U.S.-listed trust for exposure, BTXX directly tracks Bitcoin, potentially shielding Australian investors from U.S. regulatory risks.
ASX listings are particularly significant since the exchange handles 80% of the country’s equities trading. Since its launch, DigitalX’s ETF has performed well, with its unit price climbing from $20 (US$12.93) to $31.09 (US$20.10).
DigitalX Chair Toby Hicks Recats to 2024 Financial Year Report
DigitalX Chair Toby Hicks revealed that after the close of the 2024 financial year, the Board recognized that adjusting company costs was essential to stay sustainable and keep driving the business forward.
The company pointed out challenges in attracting funds under management, despite its strong performance, largely due to the smaller pool of potential investors compared to traditional financial products.
This strategic pivot comes as new regulatory shifts are anticipated in the U.S. following Donald Trump’s recent presidential win. Hicks noted that the current political environment could lead to “greater regulatory clarity within and from the U.S.,” potentially opening doors for new opportunities for the company and its investors.
Crypto.com Expands Into the Australian Crypto Market
Crypto.com is growing its presence in Australia by acquiring Fintek Securities, which holds an Australian Financial Services (AFS) licence. This move allows Crypto.com to offer products like derivatives, securities, and foreign exchange under the Australian Securities and Investments Commission (ASIC).
The company plans to limit its offerings to “eligible users” but hasn’t shared specifics on the target audience or launch timeline. Crypto.com must also meet strict regulatory requirements, including defining its target market under Australia’s Design and Distribution Obligations. This acquisition highlights both the opportunities and challenges of expanding in a tightly regulated financial market.
DigitalX and Crypto.com are taking big steps to strengthen their positions in Australia’s crypto market. DigitalX is cutting costs and introducing new Bitcoin investment options, gearing up for what it sees as a major turning point for digital assets. Meanwhile, Crypto.com’s acquisition of Fintek Securities opens the door to offering a wider range of regulated financial products.
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