DigitalX (ASX: $DCC) Monthly Update

DigitalX Limited (ASX: $DCC) provided its monthly update on funds under management and the value of Bitcoin and digital asset holdings as at the end of March 2024. The DigitalX Bitcoin Fund increased by 10.6% for the month, while the DigitalX Fund increased by 13.2% compared to the S&P Cryptocurrency Top 10 Equal Weight Index (AUD). The company also confirmed the actual Performance Fee revenue earned for the Quarter ending March 2024 was $271,883, an increase of 3.4% from the original estimate.

DigitalX CEO, Lisa Wade, on March Performance and Market Outlook

Our DigitalX Fund had a strong March following one of its best performing months on record in February. This month's performance gives us our best quarter on record at 61.1% since March of 2021, and as per our announcement on 3 April 2024, the Fund's monthly increase has produced its first performance fee in some time. Most importantly, this rally in digital assets appears to be foundational with strong fundamentals that we follow in our in-house asset selection methodology, showing very good signs of activity in terms of tangible factors such as network activity and strong market volumes. As I have stated previously, it's truly remarkable to watch this transformation in digital asset markets, largely led by the demand from US-based spot Bitcoin ETFs and a visible scaling of real world asset tokenisation markets. Although the probability of an SEC approval in May seems unlikely at this stage, we still believe the next narrative will be around the Ethereum ETFs. We continue to believe there will be solid price action as we approach a potential approval, especially with 25% of ETH locked up in staking. In the broader Altcoin space, we expect prices to continue rallying with Bitcoin continuing to reach all-time highs. Historically the outperformance of our fund products has been largely attributable to a bias towards the larger cap Altcoins. However, with other digital assets rapidly adapting to the regulatory guardrails and coming into their own, there is potential for this to change over 2024 as we take up more and more thematic holdings to take advantage of opportunities in the broader shift into Web3 financial rails.

DigitalX March Performance Summary and Outlook

DigitalX Limited (ASX: $DCC) reported a strong performance in its digital asset funds for March 2024, with the DigitalX Bitcoin Fund increasing by 10.6% and the DigitalX Fund increasing by 13.2%. The company also confirmed the actual Performance Fee revenue earned for the Quarter ending March 2024 was $271,883, an increase of 3.4% from the original estimate. Bitcoin and Ethereum prices surged during the month, with Bitcoin surpassing its all-time high and Ethereum rising above US $4,000. DigitalX CEO, Lisa Wade, expressed optimism about the future market outlook, particularly focusing on the potential approval of Ethereum ETFs and the rally in Altcoin prices. The company aims to capitalize on opportunities in the broader shift into Web3 financial rails and expects continued positive price momentum in digital assets throughout the year.