DigitalX reports strong performance in digital asset funds

DigitalX Limited (ASX:DCC) has provided an update on its funds under management (FUM) and the value of Bitcoin and digital asset holdings as at the end of September 2024. The DigitalX Bitcoin Fund increased by 8.2% for the month, while the DigitalX Fund increased by 8.5%, outperforming the S&P Cryptocurrency Top 10 Equal Weight Index (AUD), the All Ordinaries Index, and gold AUD over the same period.

Executive Commentary on Digital Asset Market Performance

The digital asset market experienced a strong surge following the 50 basis point rate cut by the U.S. Federal Reserve. The market is currently factoring in another rate cut of 25 basis points in the November meeting, according to the CMEs FedWatch Tool. This led to a positive change in sentiment amongst risk assets, resulting in one of the strongest weeks of inflows into the US spot Bitcoin ETFs. The US-based Bitcoin ETFs now hold ~US$61 billion, an increase of 11% month on month. The US-based Ethereum ETFs, however, have struggled to garner the same momentum, with an increase of 2.4% month on month, to US$7.1 billion as at 30 September 2024.

Summary of DigitalX September 2024 Update

DigitalX (ASX:DCC) reported a strong performance in its digital asset funds, with the DigitalX Bitcoin Fund and DigitalX Fund increasing by 8.2% and 8.5% respectively for the month of September. The digital asset market outperformed major indices and gold AUD, driven by a surge following the U.S. Federal Reserve rate cut. The approval of options for BlackRock's spot Bitcoin ETF and the adoption of digital assets for national treasury reserves indicate a growing acceptance and integration of digital assets in traditional financial systems. DigitalX continues to focus on growing the blockchain economy through its digital asset funds management business, digital fintech and regtech products, and blockchain ventures, positioning itself as a key player in the evolving digital asset landscape.