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Bitcoin and Digital Asset Update It has been a strong period for digital asset markets with the mainstream press coverage even beginning to turn positive towards the asset class. Institutional adoption from billionaire investors has helped, as has the unprecedented macroeconomic conditions. Central banks around the world have been rushing to provide liquidity to institutions, businesses and individuals facing pressure from COVID-19. The response we have seen by central banks to COVID-19 is an acceleration of loose monetary policies which include low-interest rates and balance sheet expansion/QE. The approach has been necessary to support economies and provide for an ageing population, unfunded pension plans, and a global debt position that is at an all-time high. With the global lockdown, a massive spike in stimulus and currency debasement is unavoidable. The Fed's balance sheet will expand to US $10 Trillion. With experts predicting the Federal Reserve balance sheet will expand to US$10Trillion, attention has rightly been turning to alternatives like gold, and to the digital version, Bitcoin, which has a finite supply of only 21million. The Bitcoin monetary system was launched in the GFC, in 2009, partly in response to excessive central bank printing to bail out institutions and has been stress-tested for over 10 years. Institutional Interest gets off zero The unconventional monetary policy campaign helped move one of the world's largest macro investors into Bitcoin this month. Famed Investor, Paul Tudor Jones with an estimated wealth of over $10B came out in support of the asset. "recognising its potential in a period when we have the most unorthodox economic policies in modern history." On CNBC he outlined the bullish case and his % portfolio allocation to the asset https://www.cnbc.com/2020/05/11/paul-tudor-jones-calls-bitcoin-a-great-speculation-says-he-has-almost-2percent-of-his-assets-in-it.html. Widespread media coverage contributed to the positive momentum and Paul Tudor Jones's view that Bitcoin should enjoy a premium, as the only liquid global store of value with a finite and known supply struck a chord with many. https://www.copyright link/companies/financial-services/the-respectable-case-for-owning-bitcoin-20200511-p54rri This news followed that of the world's most successful fund, Renaissance Technologies LLC entering the market. Their renowned Medallion fund has produced 30%+ pa returns for 30 years! Time will tell if the institutional herd will follow the smart money! The Bitcoin halving. There was a major catalyst for Bitcoin this week, which only comes around once every four years. Bitcoin was designed with a 21 million maximum cap on supply. In 2009 distribution began from zero and is released daily over effectively 30 years in a pre-determined schedule. Bitcoin is coming up for its third “halving” event, where the daily supply of new Bitcoin is cut in half. After nearly 4 years of 1,800 Bitcoin hitting the market daily (12.5 every 10 minutes), the May 2020 halving will drop the supply to only 900 Bitcoin daily, and reduce the inflation rate to just 1.8%. This inflation rate is roughly equivalent to the gold inflation rate. Simple supply-demand economics tell us if daily supply halves and demand remains the same, or increases, the price should increase. The first week of trading has been a positive one and we had the opportunity to sit down with the Small Caps team and share our view on the halving https://*********.com.au/bitcoin-halving-what-is-it-how-will-it-affect-pricing/ Historically, the year after the halving has seen the best price performance. What will the next 365 days bring? Bitcoin has posted its best returns ever after each halving event. Source:Bloqport.com Simple, secure acces to Bitcoin through a traditional fund structure. DigitalX Ltd(DCC.ASX)has been securely managing Bitcoin for seven years and is the largest holder of Bitcoin on the ASX. The difficulties in acquiring Bitcoin, particularly as part of a SMSF, have been well documented. This led to DigitalX launching the DigitalX Bitcoin Fund, designed to provide exposure to Bitcoin while managing all of the administration and technical challenges of buying and securing the asset. The fund is available to qualified investors only. If you would like to learn more or access DigitalX digital asset news, please click below. DigitalX Bitcoin Fund Fact Sheet Disclaimer and Disclosure The information and opinions contained in this document have been compiled from, and based upon generally available information and independent research undertaken by ourselves, which has been qualified and reviewed by our portfolio managers for suitability. However, the accuracy or completeness of the analysis cannot be guaranteed. Confidentiality: The information in this document and any attachments may contain proprietary information some or all of which may be legally privileged. It must not be disclosed to or used by persons other than the intended recipient. If received in error, please notify us immediately and then delete this document. Content: Please note that the content of this document may be e-mailed and may be intercepted, monitored or recorded for compliance purposes. 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