New DAC, what should I look for?

Two thoughts-

Since you already have Holo product, a Holo ladder dac.

If that doesn't do it, musetec (lks) mh-da005 dac.

Since you have HQ Player, I would suggest you look for a used T+A DAC 200. It has separate processing paths for DSD and PCM and does spectacularly well with high res feeds from HQ player. Yes, I own T+A gear, but this recommendation comes with a lot of outside support. There are forums on audiophile style dedicated to the unit and HQ player you might want to peruse. 

The DAC checks the boxes you list regardless of format (but is shockingly good on native DSD upsampled from HQP) and is within your budget pre-owned. At least worth exploring.

Best, 

The sound profile that I'm looking for is smooth and spacious

The PSA DirectStream Mk1 isn't smooth or spacious? Just want to clarify.

I love my Holo Audio Spring 3. Very smooth, spacious, good detail, solid all around. I will never look for another DAC. This part of my system is done.

Here are a few worth looking at given what you’re looking for.  Best of luck.

https://www.mojo-audio.com/demo-mystique-y-am-d-a-converter/

https://www.audiogon.com/listings/lisbcf2a-denafrips-terminator-dac-15-terminator-new-terminator-15-dac-plus-da-converters

https://www.lineartubeaudio.com/products/aero-dac-digital-analog-converter

OP:  The sound profile that I’m looking for is smooth and spacious.

Have you seriously tweaked the upstream components first, the modem & router?  With: LPS’s - digital filters - quality ethernet cabling - power conditioning?   

Agree with a Holo Audio DAC to match your Red streamer.  I love the sound of my Cyan 2.  Their May DAC is top of the line and you should be able to find a used one for under 5K.  

I think the Holo DAC recommendation is a good one from what I hear of their DAC’s. I use a Merason Reuss which fits your desired sound signature, worth a look.

@steakster The router is a Silent Angel Bonn with a dedicated power supply (HDPlex). All ethernet cables are AudioQuest. Power conditioning is done by PSA PowerPlant 12.

Regarding Holo Audio Dac's... I listened to the May KTE and although nice, it wasn't much of an improvement from my modded PSA DirectStream; different yes, but not necessarily better in all regards.

@soix I'm not sure about the Mojo... PCM only and no DSD support. Maybe I'm overthinking it, but I see that as a limitation. Same goes for the LTA. I'm working on arranging a borrow of a Terminator 15.

This guy says they all sound the same. https://youtu.be/hOOHneFYGYA

@texasblues1959 Just like there's people saying you can't hear the difference between cables, or between amps for that matter... everyone's entitled to their opinion.

You can get a Excellent Denafrips Terminator15- upgraded Terminstor 12thPlus  dac for That  price New and sounds Very good a Big 42 lbs true R2R dac.i sell them PT 

but just do your own homework these were $7200 last year. Even better today.

if you are looking at price ,performance, price Delivered in stock 

compare anything  in its price class that is delivered for this price and in stock.i own one myself with another great dac in my other system.

I'm not sure about the Mojo... PCM only and no DSD support. Maybe I'm overthinking it, but I see that as a limitation. Same goes for the LTA

Most DACs don’t do native DSD and convert it to PCM anyway.  I know T+A is one that does native DSD. 

@texasblues1959  that is the right mindset but apparently we have super human hearing every time we spend more

I second the recommendation for T+A 200 DAC. It's just unbeatable at that price for DSD performance and sounds pretty amazing with an added advantage of an analog preamp built in.

I third the recommendation for the T+A DAC 200.

@audiojan you have 2 reasons for going with the T+A - HQ Player and Holo Red. That is an amazing setup for the T+A DAC where one gets to experience pure DSD streams. A used T+A should be within your budget.

BTW, in your current setup, do you keep the SGC i7 out of the audio room?

For features, I would make sure it has: An excellent, linear power supply; I2S input, DSD512 and 32b/768k capability. Balanced and RCA outputs. The DAC chip seems to be either not relevant or critical, depending on who you speak with. At the moment R2R DACS and ESS 9038Pro are the big two, but it's all about implementation. I'd add OCXO clock, FIFO buffer, FPGA controller and a 10k clock input, One thing I'd consider: DAC's are still evolving rapidly. I'm not sure I'd spend 5k on something that might be old-tech in a few years. The 3k LAIV and Denafrips Venus 15 seem to fit the bill. 

Another vote for you getting a Holo DAC.