I don't have either unit so I can't say why you are having the problem you described.
Regarding your question about the coaxial connection , if my eyes aren't deceiving me from pictures of the backs of both units the Bluesound has a coaxial output that appears to take an RCA plug while the Chord has a BNC input. If that is correct you would need either a Digital S/pdif cable that has an RCA connector on one end and a BNC on the other, or a Digital S/pdif cable that has either 2 BNC connectors or 2 RCA connectors and then get an adaptor plug to convert either one BNC connector to RCA, or the converse
Regarding your question about the coaxial connection , if my eyes aren't deceiving me from pictures of the backs of both units the Bluesound has a coaxial output that appears to take an RCA plug while the Chord has a BNC input. If that is correct you would need either a Digital S/pdif cable that has an RCA connector on one end and a BNC on the other, or a Digital S/pdif cable that has either 2 BNC connectors or 2 RCA connectors and then get an adaptor plug to convert either one BNC connector to RCA, or the converse