The Bifrost sounds like a great choice (and add a separate amp like Valhalla)!
I have only heard a Ragnarok (an amp) but that was great so I trust Schiit as a company. They also have many great reviews. I think you will notice big improvement in SQ. I have an iFi Nano and a Dragonfly Black but prefer my separate dac through the Ragnarok. If you go with Valhalla to keep the price down you can always upgrade the amp later and keep the Bifrost.
Other brands to check out could be Okto or iFi (with their more expensive solutions).
https://www.stereophile.com/content/okto-dac8-stereo-da-processor
https://ifi-audio.com/products/neo-idsd/
I have only heard a Ragnarok (an amp) but that was great so I trust Schiit as a company. They also have many great reviews. I think you will notice big improvement in SQ. I have an iFi Nano and a Dragonfly Black but prefer my separate dac through the Ragnarok. If you go with Valhalla to keep the price down you can always upgrade the amp later and keep the Bifrost.
Other brands to check out could be Okto or iFi (with their more expensive solutions).
https://www.stereophile.com/content/okto-dac8-stereo-da-processor
https://ifi-audio.com/products/neo-idsd/