F5 Crypto Fund

Overview

Crypto assets are the asset class with the highest expected returns. The F5 Crypto Fund invests in the strongest tokens with strong fundamentals. Investors can join the F5 Crypto Fund at any time.

Easy to invest and under the supervision of the German financial authority “BaFin,” the F5 Crypto Fund buys the most promising crypto tokens directly, using secure trading and safe custody. Investors in the fund benefit from price appreciation while enjoying peace of mind.

Investors can monitor their investment at all times in their personalized fund dashboard.
Request your demo-dashboard.

Investment Objective

The fund’s objective is the long-term growth of its invested capital via an optimal, diversified portfolio of native crypto assets. The actively managed fund pursues discretionary investments based on fundamental analysis of the most promising crypto assets and exploits inefficient valuations in this new asset class.

Investment Theses

The onchain economy will continue to grow. As in any growing economy, new businesses are carving out markets and generating profits. These new onchain businesses are investable now at low valuations; like Amazon or Netflix in the 2000s when the internet was still young. We believe that

1. Finance is moving Onchain.
2. Onchain Financial Service Businesses (OFSs) will generate large profits.
3. OFS issue tokens instead of traditional shares.
4. OFS tokens are available now at extremely favorable valuations.
5. Our team identifies promising tokens reliably.

1. Finance is moving Onchain

Bitcoin is a technology for storing value. By introducing digital scarcity combined with a way to hold and transfer without third parties, Satoshi’s invention of Bitcoin created a new type of asset, a kind of digital gold. Since its inception, Bitcoin has been the best-performing asset frequently.

Bitcoin has demonstrated that holding and transferring value without any company or state works.

The second large type of asset that is moving onchain are Dollars in the form of dollar-tokens, so-called stablecoins. Stablecoins have reached over $200 billion in market cap. On the success of the technology, the EU and the US have passed stablecoin legislation. The first stablecoin company, Circle, is public.

Soon, more financial assets will migrate onchain. The onchain infrastructure is superior to traditional ownership documentation. Land registers, municipal court share registers and central depositories will, in time, all be partially or fully replaced with a blockchain. This transition will happen slowly step by step.

2. Onchain Financial Service Businesses will generate large profits

Assets live onchain. They are transferable, tradeable and can be used in financial contracts 24/7/365.

The two most common types of financial activity onchain today are trading and lending.

A trade converts one asset into another. Onchain exchanges facilitating trades are called decentralized exchanges (“DEX”). Many operate without order books, instead using an automated market maker (“AMM”) to price assets and provide around the clock, automated liquidity.

A loan issues one asset against another asset as collateral. Like a DEX, a decentralized loan protocol issues and redeems loans automatically without human intervention. Borrowing rates emerge naturally. Most importantly, robust lending protocols handle liquidations automatically in real time.

Businesses offering trading and lending onchain earn fees. In 2024, total DEX trading volume is estimated at $1.2 trillion with an average fee around 0.15% for about $1.8 billion in revenue. Lending produced even more revenue at an estimated $3 billion.

Both the variety and the volumes of onchain assets are growing. As the asset base grows, the financial activity will grow as well, generating increasing fees. The OFS collecting these fees will see their profits grow.

3. OFS issue tokens instead of traditional shares

Most onchain businesses organize under a new form of company called a DAO, known as a decentralized autonomous organization. These DAOs operate much like a regular company: there are ownership rights and profit-sharing rights. In an ideal case, these rights are guaranteed by onchain code and represented by onchain tokens. For example, a protocol might have a rule to distribute profits quarterly to token holders. This profit calculation and distribution happens automatically onchain, without any off-chain accounting or a bank account to make transfers. Changes to this automatic profit distribution would require a two-thirds majority vote of token holders.

The benefits of tokens instead of traditional shares are many. The rules governing tokens are public, transparent, and execute predictably. DAOs typically operate without a traditional jurisdiction, allowing international access and freedom of structure. Tokens themselves can be minted, redeemed, transferred and traded onchain.

Given all these benefits, modern onchain financial service businesses elect to issue tokens instead of going the traditional incorporation route. Some OFS also elect to choose a dual structure, with both a traditional company and an onchain DAO. Analyzing these structures carefully is paramount to investment success.

4. OFS tokens are available now at extremely favorable valuations

Many Onchain Financial Services on the blockchain have issued tokens that grant both voting rights and profit-sharing rights. These tokens trade freely on centralized exchanges such as Coinbase, Kraken and Binance.

The market for OFS tokens is dominated by casual investors who follow trends and narratives. Traditional investors often have no access to these markets. Large financial institutions in 2025 continue to struggle to square the simple acquisition of Bitcoin with their bylaws. Smaller, newer OFS tokens are completely off-limits for many large investors. As such, F5 Crypto is one of the few professional investors analyzing OFS tokens using proper valuation models today.

The gap between a trend- and narrative-based valuation and an FCF based valuation can be extremely large. In our view, many crypto tokens available for trading are, in line with their bad reputation, massively overvalued, riding waves of expectation that are wildly unrealistic. On the other hand, a few select OFS have demonstrated product market fit, earn growing revenues over several years, yet have their tokens valued at low multiples, making for very attractive investments.

5. Our team identifies promising tokens reliably

Our F5 Crypto team has a unique track record of identifying trends and risking money and career on these predictions.

Paul Otto, our Chief Investment Officer, has studied Bitcoin intensely in 2013. A year later, he finally had the conviction to allocate 10% of his personal net worth in Bitcoin.

Florian Döhnert-Breyer, one of our Fund Managers, wrote his master’s thesis on crypto ETFs in 2017. In 2024, the first crypto ETFs were launched.

Prof. Dr. Hermann Elendner delivered the first university lecture on Blockchains in 2017. He left academia in 2022, to join our team full time.

The Chance for Investors

The onchain economy is growing rapidly. An increasing number of financial assets, such as stablecoins and securities, are migrating to open blockchains. Onchain financial service businesses (OFS) are generating steadily increasing revenues. Their tokens carry profit rights and generate cash flows. F5 Crypto identifies undervalued OFS tokens early and invests selectively in the winners of the emerging onchain financial world.

Fund investors participate in this success. Contact us.

Monthly Investor Reports

Fund Managers

Paul Otto

Managing Director, Fund Manager

• Mathematician
• World-class E-Gamer
• Early Bitcoiner

Florian Döhnert-Breyer

Managing Director, Fund Manager

• Serial tech-entrepreneur
• Early-stage crypto investor
• Master thesis on crypto ETF

Prof. Dr. Hermann Elendner

Managing Director, Fund Manager

• Finance Professor at 30
• Lectured about Blockchain since 2017
• F5 Crypto Index Developer

Fund Details

Performance

Performance graph of the F5 Crypto Fund

Risk Management

The F5 Crypto Fonds 1 reduces the volatility inherent in crypto markets via its scientifically based state-of-the-art Value-at-Risk (VaR) risk management tool, developed by Prof. Hermann Elendner.

Portfolio Insights

Hyperliquid

DeFi: Perpetuals

Jupiter

DeFi: Allrounder

Sky

Stablecoin

Jito

Liquid Staking: Solana

Aave

DeFi: Lending

Pendle

DeFi: Yield Dex

Uniswap

DeFi: Dex

Marinade

Liquid Staking: Solana

THORChain

Cross Chain

Lido DAO

Liquid Staking: Ethereum

Marinade Staked SOL

Layer 1

Legal Setup

The F5 Crypto Fund operates as a publicly accessible Special AIF in accordance with § 282 of the German KAGB. Operation of the fund falls under the purview of the external AIF fund management entity, F5 Crypto Management GmbH, registered under § 2 (4) of the KAGB. The fund is available for investment for semi-professional investors starting from 200,000 EUR and for professional investors starting from 50,000 EUR. Since 2021, the fund has been one of the first open cryptocurrency funds in Germany.

Service Partners