VanEck Launches Private Fund for Avalanche Web3 Projects in June

VanEck, a prominent asset management firm, has announced its plans to launch a private digital assets fund in June, specifically targeting tokenized Web3 projects built on the Avalanche blockchain network. The fund, named the VanEck PurposeBuilt Fund, will be managed by the Digital Assets Alpha Fund investment team. This new fund aims to invest in liquid tokens and projects within the Avalanche ecosystem, with a particular focus on sectors such as gaming, payments, AI, and financial services. The fund will primarily invest around or after a token generation event, ensuring that it backs projects with real-world utility and long-term value.
The VanEck PurposeBuilt Fund is designed to support founders within the Avalanche ecosystem who are building scalable and sustainable projects. Pranav Kanade, the portfolio manager of the VanEck Digital Assets Alpha Fund, emphasized that the fund will not chase short-term trends or hype. Instead, it will focus on real businesses that offer lasting value. Kanade noted that Avalanche has attracted thoughtful builders, and the fund aims to provide capital and conviction to these founders, fostering the creation of lasting value rather than chasing momentum.
The fund will also deploy idle capital on-chain through Avalanche-native real-world asset products, such as tokenized money market funds. This approach ensures that the fund not only invests in promising projects but also contributes to the overall growth and stability of the Avalanche ecosystem. The VanEck Digital Assets Alpha Fund, which manages the new vehicle, has over $100 million in assets under management and was launched in 2022. This experience and expertise will be leveraged to drive the success of the PurposeBuilt Fund.
The launch of the VanEck PurposeBuilt Fund comes at a time of growing institutional interest in Avalanche. This interest is evident in recent developments, such as Grayscale's filing to convert its Avalanche Trust into a spot exchange-traded fund. This move, along with other regulatory filings, indicates a broader trend of institutional investors seeking regulated exposure to AVAX and the Avalanche ecosystem. The PurposeBuilt Fund is poised to capitalize on this trend by providing targeted investment opportunities in the Avalanche ecosystem, supporting the growth of real-world applications and sustainable projects.
This move by VanEck underscores the increasing focus on real-world utility and sustainable token economies within the crypto space. Avalanche's interrelated networks, known as subnets, allow institutions to run Ethereum-style smart contracts in a controlled environment, making it an attractive platform for institutional-oriented crypto projects. The launch of the VanEck PurposeBuilt Fund is expected to further bolster the Avalanche ecosystem, providing much-needed capital and support to projects that are building real-world applications and sustainable token economies.

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