{"id":12310,"date":"2025-05-22T02:20:40","date_gmt":"2025-05-22T00:20:40","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12310"},"modified":"2025-05-22T02:20:40","modified_gmt":"2025-05-22T00:20:40","slug":"vaneck-unveils-new-fund-dedicated-to-the-avalanche-ecosystem","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/22\/vaneck-unveils-new-fund-dedicated-to-the-avalanche-ecosystem\/","title":{"rendered":"VanEck Unveils New Fund Dedicated to the Avalanche Ecosystem"},"content":{"rendered":"

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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.<\/p>\n

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.<\/p>\n

Surplus capital will be allocated to Avalanche (AVAX<\/a>) real-world asset (RWA) offerings, including tokenized money market funds, according to VanEck.<\/p>\n

The fund will be overseen by the team managing VanEck\u2019s Digital Assets Alpha Fund (DAAF), which administers over $100 million in net assets as of May 21.<\/p>\n

\u201cThe upcoming wave of value in crypto will derive from actual businesses, not additional infrastructure,\u201d Pranav Kanade, portfolio manager for DAAF, remarked in a statement.<\/p>\n

RWAs are among crypto\u2019s quickest-growing sectors. Source: <\/em>RWA.xyz<\/em><\/a><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Tokenized stocks might exceed $1T in market capitalization \u2014 Execs<\/strong><\/em><\/a><\/p>\n

Thematic crypto funds<\/h2>\n

VanEck\u2019s 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.<\/p>\n

On May 14, VanEck introduced a new actively managed exchange-traded fund<\/a> (ETF) that targets stocks and financial instruments connected to the digital economy.<\/p>\n

In April, VanEck launched another ETF focusing on a passive index of companies operating within the crypto space.<\/p>\n

Asset managers like VanEck are seeking the approval of the US Securities and Exchange Commission (SEC) for listing over 70 crypto<\/a> ETFs.<\/p>\n

This surge in ETF applications is a reaction to US President Donald Trump easing the agency\u2019s regulatory approach towards crypto following his assumption of office in January.<\/p>\n

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Avalanche TVL as of May 21. Source: <\/em>DefiLlama<\/em><\/a><\/figcaption><\/figure>\n

Avalanche RWA ecosystem<\/h2>\n

Avalanche has become a center for real-world assets (RWAs) and other institution-focused crypto initiatives.<\/p>\n

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<\/a> on the Avalanche blockchain, specifically targeting institutional investors.<\/p>\n

Avalanche possesses approximately $1.5 billion in total value locked (TVL) as of May 21, based on data<\/a> from DefiLlama.<\/p>\n

\u201cWe are witnessing a transition from speculative excitement towards genuine utility and sustainable token economies,\u201d John Nahas, chief business officer at Ava Labs, stated.<\/p>\n

Magazine:\u00a0<\/strong><\/em>Warning signs for Bitcoin as retail shifts towards institutions \u2014 Sky Wee<\/strong><\/em><\/a><\/p>\n