VanEck Embraces Avalanche‘s Web3 Potential
VanEck, a prominent asset manager, is diving deeper into the world of Web3 with the launch of a new private digital assets fund specifically targeting projects built on the Avalanche blockchain network. This move marks a significant step for VanEck as it capitalizes on the rapidly growing ecosystem of tokenized real-world assets (RWAs) on Avalanche.
The “VanEck PurposeBuilt Fund,” scheduled to launch in June, will be exclusively available to accredited investors. It aims to invest in liquid tokens and venture-backed projects across various Web3 sectors, including:
- Gaming
- Financial services
- Payments
- Artificial intelligence
When it comes to idle capital, VanEck plans to strategically deploy it into Avalanche‘s real-world asset (RWA) products. This includes tokenized money market funds, highlighting the firm’s focus on the growing importance of RWAs in the crypto space.
Riding the Wave of Institutional Adoption
This new fund will be managed by the team behind VanEck‘s Digital Assets Alpha Fund (DAAF), which currently oversees more than $100 million in net assets. This underscores VanEck‘s experience and expertise in the digital asset space.
“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, portfolio manager for DAAF.
This statement reflects the growing sentiment within the industry, where the focus is shifting from speculative hype to real-world utility and sustainable token economies. Avalanche, with its focus on institutional-friendly infrastructure, is well-positioned to benefit from this trend.
Avalanche: A Hub for Institutional Adoption
Avalanche has emerged as a leading platform for real-world assets and institutional-oriented crypto projects. Its unique design, featuring interconnected networks called subnets, allows institutions to operate Ethereum-style smart contracts in a controlled environment, fostering greater trust and security.
This approach has attracted a significant amount of capital and projects. On May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, specifically targeting institutional investors. As of May 21, Avalanche boasted around $1.5 billion in total value locked (TVL), demonstrating its growing influence in the decentralized finance (DeFi) landscape.
A Growing Trend: Thematic Crypto Funds
VanEck‘s PurposeBuilt Fund is just the latest in a series of thematic funds from the asset manager and its competitors designed to offer exposure to promising segments of the Web3 space. The surge in ETF filings reflects the growing interest from institutions and the increasing demand for regulated products in the crypto space.
As the crypto landscape continues to evolve, we can expect to see more specialized funds like this one emerge, allowing investors to access specific sectors and technologies within the Web3 ecosystem.
