A digital asset fund run by a Perth-based blockchain company is the first in Australia to receive an investment-grade rating.

DigitalX (ASX:DCC) says its Bitcoin Fund could become far more widely distributed after the digital asset fund received an investment-grade rating by SQM Research, one of Australia’s most recognised and respected research houses.

As part of the rating process, SQM reviewed the Bitcoin Fund on several key areas including strategy, team, performance, governance and compliance, fees and expenses, liquidity and risks.

The rating will provide institutional investors with increased confidence for investing in DigitalX’s Bitcoin Fund, and allow wealth managers to add it to their approved product list.

With an estimated 21,670 registered financial advisers in Australia, overseeing approximately $962 billion in funds under advice, that could mean big inflows for DigitalX.

The company had a total of $40.41 million in funds under management across its Bitcoin Fund and its Digital Asset Fund as of November 30.

The two funds have racked up stellar returns – the BTC fund is up 218.78 per cent in the 12 months to November 30, while the Digital Asset Fund has gained 347.1 per cent in the same timeframe – but their lack of an investment grade rating has likely limited their availability.

Many months of hard work

“After many months of hard work, we are pleased to have secured an investment grade research rating for the DigitalX Bitcoin Fund,” said Matt Harry, DigitalX’s head of funds.

“Not only is this a first in Australia, but the rating will significantly improve our ability to access the relatively untapped financial adviser market by providing them with access to a market-leading product that is audited, titled, insured and managed by a team with deep experience in digital asset markets.”

The funds are only open to accredited investors. Anyone looking to invest can simply submit a query through the fund’s website – or, soon, just ask their financial adviser.

This article was developed in collaboration with DigitalX, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.