Is Bitcoin the 21st century’s digital gold? Animoca Brands and DigitalX are betting long

• Bitcoin is an appreciating asset, with potential to be the ‘21^st century’s digital gold’
• Investment firms and institutions are increasingly diversifying into cryptocurrencies and especially Bitcoin
• ASX companies like DigitalX are offering low bars to entry to the Bitcoin ecosystem for retail investors

Cryptocurrencies can no longer be ignored

The cryptocurrency market is experiencing a reawakening in 2025.

Bitcoin rocketed to new heights of US$124,128 each in August, before retreating to still-lofty heights of about US$109,500 at time of writing.

This year, Bitcoin held in long-dormant wallets has re-entered the market, with over 101,000 Bitcoin from wallets largely untouched since 2011 reactivating.

Net cumulative inflows into US spot Bitcoin exchange traded funds (ETFs) hit US$14.8 billion in the year to July, a sizeable increase from the years before.

On average, miners generate about 900 new Bitcoin each day, while ETFs alone are snapping up 1430 Bitcoin per day in 2025, driving demand higher.

Central Banks – often the most conservative of financial institutions – are beginning to take notice.

Faltering trust in the US dollar is playing a part.

Central Banks are moving away from the greenback and into gold in particular, but the liquidity and ease of transaction that comes with blockchain currencies is attracting more and more attention.

“There is room for both gold and Bitcoin to coexist on central bank balance sheets by 2030,” Deutsche Bank analysts Marion Laboure and Camilla Siazon wrote in a recent note.

The bank pointed out Bitcoin’s emerging status as a macro hedge, stating that they believe the asset has more room to run.

“People have always sought assets that were not controlled by governments. Gold has had this role for centuries,” Marion Laboure said.

“I could potentially see Bitcoin to become the 21st century digital gold. Let’s not forget that gold was also volatile historically.”

Just as gold has drawn a lot of interest from retail investors in recent months, Bitcoin’s reputation also appears to be maturing, considered more than just a gimmick or passing fad.

Now, it’s a legitimate financial instrument with its own value proposition your average investor is keen to explore.

‘The digital gold of our era’

Laboure isn’t the only one who describes Bitcoin as digital gold.

Due to the way the technology was immutably designed on the blockchain, there will only ever be a maximum of roughly 21 million Bitcoin in existence.

That positions Bitcoin as one of the most restricted asset classes we trade in, especially as more than 90% of total Bitcoin supply has already been mined and circulated.

Its volume can’t be increased artificially like a fiat currency. Neither can more be mined once that ceiling is reached, unlike gold.

“Bitcoin is the least speculative or most stable digital asset. It’s the digital gold of our era – like it or not,” Animoca Brands chair and co-founder Yat Siu said in an interview with Stockhead.

“If you want exposure to digital assets, Bitcoin is the one asset class you must have.”

Animoca Brands is a blockchain pureplay. The company invests in all elements of the technology from decentralised games to Charter Bank-backed stablecoins and tokenomics advisory support.

Animoca has a portfolio of over 540 companies on its investment balance sheet. The web3 company recently partnered with Standard Chartered and HKT to produce a Hong Kong Monetary Authority-licensed, Hong Kong dollar-backed stablecoin.

Even more recently, chair Yat Siu joined the board of DigitalX (ASX:DCC). DCC is an ASX-listed cryptocurrency treasury company that’s been mining the digital currency since 2014.

“If you want to give Australians an opportunity to invest in Bitcoin with a team that has the expertise and the knowledge, that can handle the custody, the safety and so on, it’s got to be DigitalX,” Siu said.

Owning Bitcoin by proxy

In July, Animoca Brands stepped in as a strategic advisor to raise $20.7 million for DigitalX. Co-founder Yat Siu joined DCC’s strategic advisory board in August.

DCC is the longest-standing publicly listed digital asset company in Australia. It launched the first ASX-listed Bitcoin exchange-traded fund in the form of the DigitalX Bitcoin ETF (ASX:BTXX).

“A way to think about it is – DigitalX is basically a proxy for the global stock called Bitcoin, so to speak. It’s a way for you to access it directly,” Siu said.

“It comes down to the management team. In the case of DigitalX, we’re talking about a team that has that long-term conviction of the longest of sorts, from before the massive Bitcoin boom.”

Yat Siu sees long-holding crypto pure plays like DigitalX as a way to hold Bitcoin without having to navigate the complexities of owning a digital wallet.

“The difference between holding bitcoin in DigitalX versus an ETP (exchange-traded product) or ETF is that you can gain leverage on the asset while still holding it more or less directly,” he explained.

“Especially because of the somewhat cautious or conservative stance the ASX has on crypto, DigitalX has unintentionally developed an arbitrage advantage because no other company can do what they do so easily.

“If you’re long in Bitcoin, you could buy the stock, but if you want to hedge yourself you can buy the ETP – we can support that either way.”

An asset class of its own

The Albanese government released draft legislation for a digital asset roadmap back in March, outlining its plans for cryptocurrency and blockchain regulation.

Considering Bitcoin first became a household name sometime around 2011, it’s about time.

More than 4.3 million Australians already own Bitcoin, and 31% of Australian adults hold a cryptocurrency of some description.

In fact, according to statistics from Statista, Finder and Capterra, Australia has the third-highest rate of crypto adoption in the world.

Aussies have always enjoyed having a punt, after all.

For all that, Bitcoin holders aren’t exactly taking up day trading.

The average holding time for Bitcoin – that is, how long an investor owns an asset without selling it – is four years and four months.

This isn’t the early days of NFTs where rug pulls and pump and dump schemes are the norm. Crypto investors have goals beyond just making a quick buck.

“I think a lot of people don’t appreciate that unlike other asset class holders who think in purely commercial terms, crypto holders – and particular Bitcoin holders – are more mission driven,” Yat Siu said.

“It’s not just about the money. A lot of people reach a point where they ask themselves ‘What’s my purpose in life? How do I want to be remembered? What will my legacy be?’

“The shared legacy among Bitcoin holders, especially the slightly older generations, is to make Bitcoin digital gold.”

Bitcoin’s social premium

While there are many different reasons Bitcoin holders share their common goal, the collective desire to increase Bitcoin’s value means many long-holding Bitcoin investors are not looking for an exit strategy.

“The social construct is so firm. It’s honestly fascinating,” Siu chuckled.

“You have people who are essentially billionaires who are seeding and supporting companies like DigitalX to spread the Bitcoin gospel.

“To them, you can buy DigitalX, you can buy Bitcoin directly, either would serve them just as well.

“This is why the shared purpose of the asset is so interesting. It doesn’t matter how you buy in, because we all win anyway.

“It’s not your classic zero-sum situation where someone has to lose out.”

Because only 21 million BTC will ever exist, Yat Siu predicts Bitcoin will – and has already started to become – a premium digital asset, the Beverly Hills of cryptocurrency.

With only 21 million on offer to a global population of more than eight billion people, owning Bitcoin could become a status symbol unlike any other.

“I think Bitcoin will hit $1 million dollars,” Siu said. “I’m not the only one who’s saying that.

“I look at Bitcoin as a cultural reserve asset. To own one Bitcoin will be a type of exclusive membership, it’s going to draw a social premium.”

The largest investment firms seem to agree. BlackRock just this month moved to launch a new Bitcoin Premium Income ETF, designed to offer yield on Bitcoin holdings.

The company’s Bitcoin and Ether ETFs are already generating more than $260 million in revenue per year. The vast majority of that is coming from Bitcoin products.

The success of these funds is signalling that crypto-based financial products are no longer an experiment, but a legitimate profit-generating asset.

This article was developed in collaboration with Animoca Brands, 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.