DigitalX Cuts Costs, Reports 99% Annual Bitcoin Fund Gain, Aims to Be a Flag Bearer in Digital Assets

DigitalX, a leading crypto fund manager in Australia, has announced an impressive 99% annual growth in its Bitcoin Fund. In the context of a dynamic global crypto market, marked by significant breakthroughs and political shifts, especially in the U.S., the company is implementing substantial cost-cutting measures to ensure sustainable growth and focus on long-term strategies.

In its latest announcement, DigitalX revealed that it has reduced annual costs by AUD 950,000 (approximately USD 614,000) through a strategic restructuring of its fund management team. This decision came after the board reviewed its operations at the end of the 2024 fiscal year. Toby Hicks, the company’s chairman, emphasized that these changes were necessary to maintain competitiveness and ensure that the company has sufficient resources to execute its business plans.

Despite the restructuring, Hicks affirmed that DigitalX remains committed to its “safe and reliable” investment strategy, which continues to deliver long-term value to clients even in a volatile digital asset market.

DigitalX’s Bitcoin Fund recorded an impressive 99% annual gain, outperforming competitors in the sector. Specifically, the fund achieved 12% growth in six months and 30% over three years, demonstrating steady performance across multiple timeframes. Furthermore, the company’s Digital Asset Fund reported a remarkable 526% growth over five years, despite a slight 2.1% decline in the last quarter.

This stellar performance reflects the increasing global appeal of Bitcoin, particularly as its price surged 106% year-to-date, reaching an all-time high of USD 87,500.

In addition to its Bitcoin Fund, DigitalX offers the Bitcoin ETF (BTXX), which targets retail investors and was listed on the Australian Securities Exchange (ASX) in July. BTXX is among the few crypto ETFs in Australia, alongside products like VanEck’s VBTC, Global X 21Shares’ EBTC, and Monochrome’s IBTC.

A significant advantage of BTXX lies in its direct ownership of Bitcoin, avoiding reliance on U.S. trust funds like VanEck’s offering. This shields Australian investors from regulatory risks in the U.S. while providing direct exposure to Bitcoin.

Since its launch, BTXX’s unit price has risen from AUD 20 to AUD 31.09, reflecting a 55% increase in a short period.

Despite its strong performance, DigitalX faces challenges in scaling its assets under management. The company acknowledged that Australia’s investor base remains relatively small compared to traditional investment markets, requiring bold strategies to attract more capital.

However, political changes in the U.S., particularly Donald Trump’s recent presidential victory, are seen as a major opportunity. Toby Hicks believes this development could pave the way for clearer regulations on digital assets, creating a favorable environment for companies like DigitalX.

DigitalX is betting on the future of digital assets, confident that cryptocurrencies will soon become an integral part of investment portfolios for both institutional and retail investors. With innovative products and a clear investment strategy, the company is gearing up for the crypto industry’s “mainstream moment,” where it transitions from being a trend to becoming a financial standard.

Amid market volatility, DigitalX is showcasing its adaptability and innovation, solidifying its position as one of Australia’s leading digital asset fund managers. Through strategic moves and a forward-thinking approach, the company is not only maintaining performance but also shaping a sustainable future for its investors.