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VanEck is launching a private digital assets fund in June, focusing on tokenized Web3 projects built on the Avalanche blockchain. The VanEck PurposeBuilt Fund, accessible only to accredited investors, will invest in liquid tokens and venture-backed projects across various Web3 sectors, including gaming, finance, payments, and AI. Idle capital will be allocated to Avalanche’s real-world asset (RWA) products, such as tokenized money market funds. The fund’s management team is the same as that of VanEck’s Digital Assets Alpha Fund (DAAF), which currently manages over $100 million in net assets. According to portfolio manager Pranav Kanade, the next significant growth in cryptocurrency will stem from real businesses rather than solely infrastructure development.
This fund represents the latest in a series of initiatives from VanEck and its competitors to provide exposure to the rapidly expanding Web3 ecosystem. Recently, VanEck launched an actively managed ETF investing in companies within the digital economy and another ETF tracking a passive index of crypto-related businesses. The company, along with other asset managers, is actively seeking SEC approval for numerous crypto ETFs, a move possibly spurred by President Trump’s reported softening of the agency’s regulatory stance on cryptocurrencies.
Avalanche has become a focal point for RWAs and institutional-grade crypto projects. Its subnet architecture allows institutions to operate Ethereum-style smart contracts within controlled environments. This is highlighted by Solv Protocol’s recent launch of a yield-bearing Bitcoin token on the Avalanche blockchain, specifically targeting institutional investors. Avalanche boasts approximately $1.5 billion in total value locked (TVL) as of May 21st, according to DefiLlama. Ava Labs’ chief business officer, John Nahas, emphasizes a noticeable shift from speculative activity towards projects demonstrating real utility and sustainable tokenomics. The convergence of VanEck’s new fund and Avalanche’s growing institutional adoption suggests a broader trend toward institutional investment in established, utility-driven Web3 projects.
