VanEck to Launch Avalanche Ecosystem Fund Targeting Web3 Projects
VanEck is set to launch a new private digital assets fund in June, focusing on Web3 projects built on the Avalanche blockchain. This move highlights the growing interest in real-world asset (RWA) tokenization and the expansion of thematic crypto funds. As reported by Cointelegraph, the fund aims to provide accredited investors with exposure to promising ventures within the Avalanche ecosystem.
PurposeBuilt Fund: Investing in the Future of Web3
The VanEck PurposeBuilt Fund will target liquid tokens and venture-backed projects across various Web3 sectors, including:
- Gaming
- Financial services
- Payments
- Artificial intelligence
Idle capital will be strategically deployed into Avalanche (AVAX) real-world asset (RWA) products, including tokenized money market funds. This approach underscores VanEck’s belief in the potential of real businesses driving the next wave of value in the crypto space.
Management and Strategy
The fund will be managed by the experienced team behind VanEck’s Digital Assets Alpha Fund (DAAF), which currently oversees more than $100 million in net assets. Pranav Kanade, portfolio manager for DAAF, emphasized the shift from speculative hype to real utility and sustainable token economies.
Expanding Thematic Crypto Funds
VanEck’s PurposeBuilt Fund joins a growing list of funds designed to offer exposure to fast-growing segments of Web3. Recent initiatives include:
- A new actively managed exchange-traded fund (ETF) launched on May 14, focused on stocks and financial instruments providing exposure to the digital economy.
- Another ETF launched in April, investing in a passive index of companies operating in the crypto space.
These moves come as asset managers like VanEck await the U.S. Securities and Exchange Commission’s (SEC) permission to list numerous crypto ETFs, reflecting a potentially softening regulatory stance.
Avalanche: A Hub for Real-World Assets
Avalanche has become a prominent hub for real-world assets (RWAs) and institutional-oriented crypto projects. Its subnets enable institutions to run Ethereum-style smart contracts in a controlled environment. Recent developments include Solv Protocol’s launch of a yield-bearing Bitcoin token on the Avalanche blockchain, targeting institutional investors.
Avalanche boasts around $1.5 billion in total value locked (TVL) as of May 21, according to data from DefiLlama. John Nahas, chief business officer at Ava Labs, noted the industry’s shift away from speculative hype toward real utility and sustainable token economies.
In Conclusion
VanEck’s launch of the PurposeBuilt Fund signifies a strategic move towards investing in the real-world applications of blockchain technology, particularly within the Avalanche ecosystem. This fund, focusing on Web3 projects and RWA integration, reflects a broader trend of institutional interest and the maturation of the crypto market. This comes just as Bitcoin price is showing signs of recovery, indicating a potentially bullish phase for the market.
Source: Cointelegraph
Disclaimer
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