F5 Crypto Fund

Overview

Crypto assets are the asset class with the highest expected returns. The F5 Crypto Fund offers the smartest way to participate.

Easy to invest and under the supervision of the German financial authority “BaFin,” the F5 Crypto Fund is investing directly into the most promising crypto assets and resolving all uncertainties of trading and custody. Investors benefit from the potential of digital assets, securely and conveniently.

The ideal way to complement financial portfolios with crypto returns, the F5 Crypto Fund allows full participation while sparing investors the efforts and risks of direct blockchain interactions.

Long-term Investment Objective

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

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 100,000 EUR. Since 2021, the fund has been one of the first open cryptocurrency funds in Germany that is allowed to invest in liquid cryptocurrencies.

Advantages

• Regulation: General Open-Domestic Special AIF according to § 282 KAGB with sub-funds.

• Security: licensed partners in Germany for crypto trading and custody.

• Portfolio Management: Fund Managers active in the crypto market since 2013.

• Risk Management: scientifically proven systems.

• Liquidity: subscriptions and redemptions anytime, no minimum investment period.

• Transparency: personal investor dashboard for daily tracking of performances and positions.

• Independence: The fund as well as the in-house external asset management company undergo an annual financial audit.

Fund Details

Performance

The performance graph depicts investment class A. The performance graph for investment class F will become visible after one year of existence. Both investment classes A and F are housed within the same sub-fund and mirror identical allocation of the fund’s assets.

Investment Theses

1. Intra-crypto diversification: broad exposure to the crypto market via selected crypto assets
2. Risk management: proprietary Value-at-Risk system

Portfolio Management

The F5 Crypto Fund invests in a diversified manner in liquid crypto assets, providing comprehensive coverage of the crypto market. The strategic approach consists of two components.

Firstly, there’s a discretionary approach that targets fundamentally promising cryptocurrencies with a medium to long-term perspective.

Secondly, the fund capitalises on apparent market inefficiencies over a shorter to medium-term timeframe.

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. Additionally, the risk management of short and mid-term positions relies on stop-loss and take-profit orders.

Portfolio Insights

Solana

Layer 1

Aave

Money Market

XRP

Layer 1

Maker

DeFi

Coinbase Wrapped Staked ETH

Liquid Staking

TRON

Layer 1

Cardano

Layer 1

Litecoin

Layer 1

THORChain

Cross Chain

Chainlink

Data Oracle

Jupiter

DeFi

BNB

Exchange Token

Ethereum

Layer 1

Lido DAO

Liquid Staking

Bitcoin

Store of Value

Jito

Liquid Staking

Dogecoin

Meme Coin

Optimism

Layer 2

Bitcoin Cash

Layer 1

Polkadot

Multichain

Avalanche

Layer 1

Pyth Network

Data Oracle

Active Management

In the crypto asset market, prioritising active management is of paramount importance. In the stock market, passive indexing has become increasingly popular. Yet stocks added to renowned indices present a track record and meet stringent reporting and audit criteria: a level crypto markets do not guarantee.Even blatantly fraudulent schemes frequently manage to secure positions in the list of top 20 or even top 10 crypto assets.There are several compelling reasons that facilitate achieving high performance through active management:

• Inefficient Market with Price Distortions: The market’s inefficiency is marked by frequent price distortions caused by an excessive influx of speculators.
• Complexity of New Technologies: The presence of new technologies creates a challenge for laymen to accurately assess and evaluate, contributing to the need for active management.
• Global Market Operating 24/7: The global market operates around the clock and responds to developments across Europe, Asia, and the USA, further underscoring the need for active management.

Fund Managers

Paul Otto

Managing Director, Fund Manager

• Mathematician
• World-class poker player
• 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

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

The key figures in portfolio management are Paul Otto and Florian Döhnert-Breyer, with Prof. Dr. Hermann Elendner overseeing risk management. The fund managers have been actively invested in the cryptocurrency market since 2013 and are among the most successful and experienced crypto specialists in Germany, with the possibility of investing in their funds. The team is further complemented by an in-house research team that is equally experienced and ranks among the best in Germany.

Service Partners