DigitalX has recently celebrated a significant milestone – the five-year anniversary of its Digital Asset Fund (“the Fund”).
Along with the Tradewiz Bitcoin Fund, the Digital Asset Fund is one of the flagship products offered by the Company’s funds management division.
Since its inception in 2018, the Fund has provided investors with simplified access to an actively managed portfolio of digital assets, focusing primarily on highly liquid cryptocurrencies within the Top 20 by market capitalisation.
From a performance perspective, the Fund returned 78% over the period from April 2018 to April 2023. According to official sources, Gold (AUD) returned 73%, while the S&P 500 (USD) returned 57%, the ASX 200 (AUD) returned 22% and the S&P Cryptocurrency Top Ten Equal Weighted Index (USD) returned -12% over the same period.
Speaking on the milestone, CEO Lisa Wade said: “Our investment philosophy is based on the concept that not all cryptocurrencies are created equal, markets are less regulated and digital asset prices are highly volatile. We are pleased that this five-year track record shows, despite the enormous volatility, this asset class can stand on its own two feet over time, especially with rigorous fundamental research applied as we do with our Universal Scoring Matrix methodology.
“DigitalX's approach focuses on selecting the best-in-class names for each crypto sector. The names chosen are then analysed on relevant factors that drive growth and valuations in the sector such as tokenomics, governance structures, token distribution and security to create a diversified portfolio of digital assets for investment.
“Digital asset management requires a unique set of skills including operating cold storage digital wallets and valuing assets using real-time on-chain data. Our funds management team possess these and present a safe pair of hands for investors seeking exposure to this emerging asset class.”
DigitalX Asset Management uses a top-down and fundamental bottom-up analysis to identify digital assets for inclusion in the Fund’s investable universe. From those, the investment committee selects the assets to be added to the portfolio, adhering to consistent sector and portfolio weighting limits.
DigitalX is in the process of expanding its funds management product offering through the establishment of the Real-World Asset Tokenisation Fund, otherwise known as the DigitalX Asset Reference Token (ART) Fund, which will offer multiple pools of digital tokens across traditional asset classes.
The Tradewiz ART Investment Fund will be one of the first of its kind in Australia and globally.