Progression of a New Asset Class
01. Digital Scarcity
2009
Bitcoin is released by an unknown person using the pseudonym Satoshi Nakamoto. Download Satoshi’s whitepaper
2010
Bitcoin price reaches an unprecedented high of $0.13 with a market cap below $1m.
2019
More than 2500 crypto assets exist with total a valuation exceeding $100b.
02. Crypto Assets are Valuable
a. Decentralized networks replace costly and slow intermediaries with software. The networks offer faster, cheaper and previously impossible services.
b. A network’s services attract users. The users need the respective scarce crypto asset to use the services.
c. Through user demand, the asset appreciates.
d. The price increase motivates developers to continuously improve the network’s software; a positive feedback loop.
03. Investing in Crypto Assets
Professional investors that want to invest, face major challenges:
Legality
Laws governing crypto assets are in their infancy.
Custody
Storing digital assets securely is tremendously difficult.
Selection
A large number of new projects are difficult to separate into the next FANG and snake oil blockchains.
4. Index based investment
An index based investment strategy gives investors exposure to the most promising crypto assets.
Investors are betting on the asset class as a whole and can’t miss the big winners.
05. F5 Crypto Index is investable
The F5 Crypto Index employs a scientifically cutting edge momentum factor investing strategy, aiming to outperform cap weighted indexing.
Our experts continuously exclude insecure digital assets and ensure the index is suitable for professional investors.
We work exclusively with regulated partners in the EU.
The F5 index is an investment strategy designed for cryptocurrencies. It harnesses the strong momentum in crypto markets.
F5’s factor-based, robust portfolio optimization incorporates state-of-the-art research to maximize cryptocurrency investment returns.