VanEck Steps into Avalanche with New Ecosystem Fund
VanEck is expanding its reach in the digital asset space with the launch of a new fund focused on the Avalanche blockchain. The PurposeBuilt Fund aims to invest in Web3 projects built on Avalanche, targeting sectors like gaming, financial services, and artificial intelligence. This move highlights the growing interest in Avalanche as a platform for real-world asset (RWA) tokenization and decentralized finance (DeFi). As reported by Cointelegraph, the fund is slated to launch in June and will be available to accredited investors.
Focus on Web3 and RWA
- The VanEck PurposeBuilt Fund will target liquid tokens and venture-backed projects within the Web3 ecosystem.
- Key investment areas include gaming, financial services, payments, and AI.
- Idle capital will be allocated to Avalanche (AVAX) real-world asset (RWA) products, such as tokenized money market funds.
Management and Strategy
The fund will be managed by the same team behind VanEck’s Digital Assets Alpha Fund (DAAF), which currently manages over $100 million in net assets. Pranav Kanade, portfolio manager for DAAF, stated that the fund’s focus is on real businesses rather than just infrastructure, signaling a shift towards sustainable token economies.
VanEck’s Expanding Crypto Fund Offerings
The PurposeBuilt Fund is part of a broader strategy by VanEck to offer diverse investment opportunities in the crypto space. Recently, VanEck launched an actively managed ETF focused on the digital economy and another ETF investing in a passive index of crypto companies. This comes as asset managers are seeking regulatory approval for numerous crypto ETFs, reflecting growing institutional interest in the sector.
Avalanche’s Role in the RWA Market
Avalanche has become a prominent platform for real-world assets (RWAs) and institutional crypto projects. Its subnet architecture allows institutions to operate Ethereum-compatible smart contracts in a controlled environment. For example, Solv Protocol recently launched a yield-bearing Bitcoin token on Avalanche, targeting institutional investors. Data from DefiLlama indicates that Avalanche has approximately $1.5 billion in total value locked (TVL) as of May 21.
Industry Perspective
John Nahas, chief business officer at Ava Labs, notes a shift from speculative hype to real utility and sustainable token economies within the crypto industry. This sentiment aligns with VanEck’s focus on investing in projects with tangible business models.
Conclusion
VanEck’s new Avalanche ecosystem fund represents a significant step towards mainstream adoption of blockchain technology, particularly in the realm of real-world assets. By focusing on projects with real-world applications and sustainable tokenomics, VanEck aims to capitalize on the next wave of growth in the crypto market. This move also underscores the increasing importance of Avalanche as a key player in the DeFi and RWA sectors. This comes just as Bitcoin price stabilizes, showing the market’s resilience.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
