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Crypto Fund Set up Guide
Ask us for an intro to any service or protocol, or ask us about our fund onboarding flow
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So You Want to Start
a Crypto Fund
Your performance has consistently outpaced Bitcoin’s returns. You were among the earliest participants in Yearn’s yield farming, captured Axie Infinity from its very first Uniswap trade, and identified Michael Saylor as a future industry titan long before others took notice. Naturally, the next step is to launch a crypto fund. You already possess the track record and the competitive edge; now you simply need external capital to propel you to Bobby Axelrod stature.
Yet building a crypto fund demands much more than exceptional returns and a knack for fundraising. To secure institutional capital—or even capital beyond your inner circle—you must establish a robust operational infrastructure. This starts with engaging trusted custodians, fund administrators, and legal advisors—professionals whose expertise serves as a critical foundation for any aspiring fund manager.
In this post, we will explore how these service providers function within the crypto ecosystem, identify the leading firms in each category, and outline the essential steps emerging managers should follow to operate a crypto fund as a fully fledged, professional business.
Custodian
Beyond a fund manager’s ability to deliver strong returns, custodians hold a pivotal place in the due diligence process for all types of allocators—whether family offices or pension funds. A custodian operates independently to secure and protect the fund’s assets. While fund managers excel at generating alpha, safeguarding assets requires a different expertise altogether. Because institutional investors prioritize asset security, most will insist on working with reputable third-party custodians before committing capital. As soon as a fund surpasses the friends-and-family phase and exceeds the $5 million AUM threshold, partnering with a trusted custodian becomes essential for drawing in broader institutional interest.
In general, custodians charge a fee tied to the proportion of a fund’s assets under management that they hold. Some may instead structure their fees around transactions or withdrawals. Within the crypto landscape, a select group of custodians has historically led the market:e transaction fees and/or withdrawal fees instead.
Historically, the leading custodians in crypto have been:
Fund Administrator
Alongside engaging a custodian, any emerging fund aiming to secure significant external capital must also appoint a fund administrator. Often referred to simply as a “fund admin,” this entity is responsible for calculating the Net Asset Value (NAV) and compiling detailed reports on the fund’s trading and investment record. In addition, the fund admin prepares the fund’s financial statements, which are subsequently shared with limited partners (LPs).
Additionally, just like other financial institutions, funds are required to perform KYC/AML for all allocators looking to invest in their fund. Usually, funds outsource this requirement to a fund admin.
Leading crypto fund administrators include:
Legal
Of course, in addition to the service providers above, all emerging fund managers should (though this isn’t legal advice!) retain a lawyer to assist in offering documents, fund structuring, and partnership agreements. Lawyers will help an emerging fund manager navigate whether the fund should be structured as a master-feeder fund, setting up an off-shore entity for non-US based allocators, and other questions that relate to the operations of the business.
Leading legal firms servicing crypto funds are:
Auditor
Finally, emerging managers will want to engage with auditors in order to verify the validity of their track record and account statements.Often, the auditor will work closely with the fund admin when preparing reports.
Leading crypto fund auditors are:
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