DACs that upsample to DSD internally?

@mahler123

Thanks for the response. Do you have any choices? I mean could you listen to PCM if you wanted? If not, can you choose between 64, 128, 256?

All Delta-Sigma DACs convert PCM to DSD.  SACD is a product of Delta Sigma modulation (recorded output of Delta Sigma DAC before filtering)

@kijanki 

Sorry, I meant output as DSD, even when the input is PCM

Xrayz - regarding cables - I'm not going to tell you that cables ARE your problem. but I've found that with really good cables, even the most affordable component can perform to a very high level.

Having said that, my experience with the Bifrost DAC is as follows
- I purchased the original Bifrost with the USB port and UBER analogue output stage upgrade
- I then installed the newer USB port upgrade - but I was still left wanting more
- I  invested in the Musical Fidelity V-Link 192. This proved to be an exceptional purchase and really proved that not all USB interfaces are anywhere near equal - this provided a significant improvement to the really fine details.
- Lastly I upgraded the Bifrost to the 4490 upgrade option which provided a significant improvement in fine details

In parallel with that I started investing in really good cables

For USB cables that linked the computer to the V-Link192 I settled on a cable that had a separate power cable like this one and found it improved the details even more when powered with a separate power supply
http://www.ebay.com/itm/Power-supply-and-USB-cable-separate-audio-signal-cable-/251589388236

The power a cable for the DAC is a DIY cable that I developed...
http://www.image99.net/blog/files/be8de0c383c5434907610d6b55049e69-75.html

For IC's I started with the KLE Innovations gZero3 and ended up with the gZero20 - a cable which costs almost three times what I paid for the DAC + Upgrades.

However, I now use a DIY IC cable that I developed...
http://www.image99.net/blog/files/4127b5fe2694586e383104364360373b-74.html

Crazy you say? - certifiable in many peoples eyes -  but I no longer yearn to replace my DAC and the sound really is excellent.

The DAC you have looks very capable and I think it would benefit greatly from some cable upgrades - but rather than experiment as I did, I would recommend taking the DAC to a good audio store that sells high-end cables and get them to connect it to one of their systems - I'm sure that the prospect of selling you some high-end cables they will jump at the chance and you get to see how the DAC performs outside of your system

If you are in the Toronto region let me know - I might be able to arrange an audition of my DIY cables :-)

Regards...

@williewonka 

Thank you for taking the time for the comprehensive response. I didn't mention before my DAC is battery powered. I don't even know if the USB port needs to be powered through the cable or not, but if so, would I need something like an iPurifier?