A managed fund that invests in the leading digital assets has posted massive gains this year as cryptocurrencies go mainstream.

DigitalX (ASX:DCC) is the only listed Australian company that offers digital asset exposure – and investors in its two funds have done very well.

The Perth-based company has a single-asset Bitcoin Fund that was up 300.4 per cent in the 12 months to October 31, while its Digital Asset Fund has posted 529.1 per cent returns in the same timeframe.

Year-to-date (to October 31) the latter fund was up 285.7 per cent, while the Bitcoin fund had gained 105.7 per cent.

In contrast, the Eureka Crypto-Currency Hedge Fund was only up 176.1 per cent for the year, as of October 31

The Digital Asset Fund invests in a professionally selected basket of the top 20 cryptocurrencies, except for stablecoins and meme coins like Dogecoin. Most recently its largest holdings were Bitcoin, Ethereum, Binance Coin, Solana and Polkadot.

“We’re looking at assets that have been to some extent de-risked, by the fact that they have got to the top 20. They have a certain size in terms of market cap and a certain amount of liquidity,” DigitalX fund manager Matt Harry told Stockhead.

“We see that as the portion of the market that is undergoing institutional and broader adoption, rather than providing access or trying to pick racehorses from the portion of the market that may see institutional adoption down the track.”

Harry points out DigitalX’s deep understanding of the crypto space. The company has a long experience in digital assets, beginning as a Bitcoin miner in 2014 , then as a corporate advisor to blockchain projects in 2017, and a funds manager for the past three and a half years. It’s also currently developing its own blockchain product, Drawbridge.

“DigitalX has been in this market longer than any other Australian company, and the breadth of our experience in terms of different parts of the market that we’ve operated in is also broader than any other Australian company that we know of,” Harry says.

Third-party, institutional-grade custody

DigitalX stores the assets with a third-party custodian licensed by the US Securities and Exchange Commission — one of only three custodians so licensed in the space.

“Obviously, we have access to economies of scale, based on the amount that we sit with them,” Harry said. (DigitalX had a total of A$39m in assets under management as of October 31).

“So it’s a lot cheaper doing that, and obviously a lot less legwork than trying to do it yourself.”

The funds are only open to wholesale investors, Harry says. Anyone looking to invest can simply submit a query through the fund’s website.

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.