Dao5 has secured $222 million for its second fund, targeting institutional investment in crypto. This raises the firm’s assets under management to about $550 million. Founder Tekin Salimi highlights a shift from speculative growth in the crypto market.
Dao5, the investment firm focused on cryptocurrency, announced it has successfully closed its second fund by securing $222 million. The firm intends to channel this capital into nurturing institutional investment within the digital currency space. With this new funding, Dao5’s total assets under management now stand at approximately $550 million. This is part of a wider trend as institutional interest in cryptocurrencies continues to rise, particularly following significant regulatory developments.
Tekin Salimi, founder and general partner of Dao5, expressed optimism about the industry’s evolving landscape. He described cryptocurrency as entering its “adolescence phase,” suggesting a shift from speculation-driven growth to a more substantial, integrated approach. Salimi pointed out that the firm will particularly focus on investing in stablecoin networks and infrastructures associated with artificial intelligence and blockchain technology.
The completion of Dao5’s second fund comes at a time when institutional investors are increasingly turning to digital assets. This rush follows last year’s approval of spot Bitcoin and Ether exchange-traded funds, which have drawn significant attention. Additionally, U.S. President Donald Trump’s recent crypto policies, aimed at deregulating the industry and emphasising the establishment of a Bitcoin reserve, have also played a notable role in this investment surge.
Despite the ups and downs of the digital asset market, ranging from extreme gains to notable losses amidst ongoing geopolitical tensions, investments have been robust. Public companies, like Rumble and Janover, are adding cryptocurrencies to their treasuries, reflecting a growing acceptance at the corporate level.
To facilitate its ambitious plans, Dao5 appointed George Lambeth, a seasoned investor in the crypto space, as General Partner. His background includes early investments in popular projects like Avalanche and Arbitrum. Salimi highlighted that key to future success will be the “real integration” of blockchain technology across various sectors, including finance and governance.
Founded in 2022, Dao5 has already made its mark by investing in over 50 companies, including notable firms like Bittensor and Story Protocol. Its first fund, which raised $125 million, was fully deployed, successfully returning the majority of capital back to limited partners. Salimi indicated that the firm is gearing up for a transition toward becoming a decentralized autonomous organization (DAO), with initial plans expected to be revealed later this year. The evolution of Dao5 reflects a larger movement within the cryptocurrency industry — one that is beginning to embrace institutional involvement more seriously than ever before.
