VanEck intends to initiate a private digital assets fund in June focusing on tokenized Web3 ventures established on the Avalanche blockchain network, as stated by the asset manager in a disclosure shared with Cointelegraph.
The VanEck PurposeBuilt Fund, restricted to accredited investors, seeks to invest in liquid tokens and venture-funded projects across Web3 domains, such as gaming, financial services, payments, and artificial intelligence.
Surplus capital will be allocated to Avalanche (AVAX) real-world asset (RWA) offerings, including tokenized money market funds, according to VanEck.
The fund will be overseen by the team managing VanEck’s Digital Assets Alpha Fund (DAAF), which administers over $100 million in net assets as of May 21.
“The upcoming wave of value in crypto will derive from actual businesses, not additional infrastructure,” Pranav Kanade, portfolio manager for DAAF, remarked in a statement.
Related: Tokenized stocks might exceed $1T in market capitalization — Execs
Thematic crypto funds
VanEck’s PurposeBuilt Fund is the newest in a series of funds from the asset manager and competitors aimed at providing access to projects and companies in rapidly growing areas of Web3.
On May 14, VanEck introduced a new actively managed exchange-traded fund (ETF) that targets stocks and financial instruments connected to the digital economy.
In April, VanEck launched another ETF focusing on a passive index of companies operating within the crypto space.
Asset managers like VanEck are seeking the approval of the US Securities and Exchange Commission (SEC) for listing over 70 crypto ETFs.
This surge in ETF applications is a reaction to US President Donald Trump easing the agency’s regulatory approach towards crypto following his assumption of office in January.
Avalanche RWA ecosystem
Avalanche has become a center for real-world assets (RWAs) and other institution-focused crypto initiatives.
Its interconnected networks, referred to as subnets, allow institutions to conduct Ethereum-style smart contracts in a regulated environment. On May 16, Solv Protocol unveiled a yield-generating Bitcoin token on the Avalanche blockchain, specifically targeting institutional investors.
Avalanche possesses approximately $1.5 billion in total value locked (TVL) as of May 21, based on data from DefiLlama.
“We are witnessing a transition from speculative excitement towards genuine utility and sustainable token economies,” John Nahas, chief business officer at Ava Labs, stated.
Magazine: Warning signs for Bitcoin as retail shifts towards institutions — Sky Wee
