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The DigitalX Bitcoin Fund and the DigitalX Fund returned 7.4% and 0.6% respectively for June 2023, outperforming the S&P Cryptocurrency Top 10 Equal Weight Index, which declined by 7.3%. Bitcoin and Ethereum continue to have overweight positions in the DigitalX Fund.
Bitcoin trading volumes surged, with significant inflows following the move by a number of institutions including BlackRock and ARK to file applications for spot Bitcoin ETFs with the US Securities and Exchange Commission.
DigitalX management sold roughly 17% of their Bitcoin holdings in June 2023, when Bitcoin was trading near its 12-month high, as part of a strategic initiative to increase working capital, manage treasury assets and leverage investment opportunities.
DigitalX has launched a new Australian-first fund, the DigitalX Asset Reference Token Fund, which provides exposure to real world assets such as property through digitised tokens.
The fund's first investment pool, HxART, enables fractional co-ownership of Australian properties aiming to mitigate housing deposit affordability issues. It includes an initiative to help 1,000 eligible individuals or families into their own homes.
The tokenisation of real world assets offers enhanced diversification, reduced fund administration and transaction costs, and introduces a significant evolution in funds management through enabling fractionalised and digitised ownership.
The DigitalX Bitcoin Fund increased 31.4% over the month and the DigitalX Fund rose 23.0%, while the S&P Cryptocurrency Top 10 Equal Weight Index (“Index”) increased 43.1%.
The positive price movement of digital assets in January was supported by a wider market rally in risk assets caused by a lower than expected inflation print in the US and an anticipated slowing pace of interest rate rises in 2023.
The DigitalX Fund underperformed the Index this month due to its relatively defensive portfolio positioning through its lower exposure to higher volatility assets, cash holdings, and the appreciation of the Australian dollar.