VanEck, a leading asset manager, is set to launch a private digital assets fund in June targeting tokenized Web3 projects built on the Avalanche blockchain network. The VanEck PurposeBuilt Fund, available exclusively to accredited investors, aims to provide exposure to liquid tokens and venture-backed projects. These projects span key sectors of the Web3 ecosystem, including gaming, financial services, payments, and artificial intelligence.
Investing in Real-World Assets (RWAs) on Avalanche
One of the standout features of the PurposeBuilt Fund is its focus on deploying idle capital into real-world asset (RWA) projects on Avalanche. These include tokenized money market funds and other innovative financial instruments.
“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, portfolio manager for VanEck’s Digital Assets Alpha Fund (DAAF).
Kanade’s statement underscores the growing shift within the crypto industry toward utility-driven projects rather than speculative ventures. The fund will be managed by the same team behind the DAAF, which oversees over $100 million in net assets as of May 21.
Avalanche: A Hub for Institutional Innovation
Avalanche has emerged as a prominent blockchain network catering to institutional use cases, particularly in the realm of real-world assets (RWAs). Its unique architecture features interrelated networks known as subnets, which allow institutions to deploy Ethereum-style smart contracts in controlled environments.
This flexibility has made Avalanche an attractive platform for enterprises seeking scalable and secure solutions. For instance, on May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, specifically targeting institutional investors.
As of May 21, Avalanche boasts a total value locked (TVL) of approximately $1.5 billion, according to data from DefiLlama. This positions the network as a critical player in the broader decentralized finance (DeFi) and RWA ecosystems.
“We’re seeing a shift away from speculative hype toward real utility and sustainable token economies,” said John Nahas, chief business officer at Ava Labs.
Nahas’ remarks reflect the evolving priorities of blockchain developers and investors. These players are increasingly focused on creating tangible value through tokenization and decentralized applications.
Expanding VanEck’s Crypto Offerings
VanEck’s new Avalanche ecosystem fund represents the latest addition to VanEck’s growing lineup of crypto-focused investment vehicles. Earlier in May, the firm launched an actively managed exchange-traded fund (ETF) designed to invest in stocks and financial instruments tied to the digital economy.
In April, VanEck also introduced another ETF that passively tracks companies operating in the crypto space. These initiatives highlight the firm’s commitment to providing diverse exposure to the burgeoning Web3 and blockchain sectors.
Regulatory Tailwinds Fueling ETF Filings
VanEck’s expansion into digital assets aligns with a broader trend among asset managers seeking approval from the U.S. Securities and Exchange Commission (SEC) to list upward of 70 crypto ETFs. This surge in filings follows a noticeable softening of the SEC’s regulatory stance toward crypto. Such a shift has occurred under the leadership of President Donald Trump, who took office in January.
Trump’s administration has signaled a more crypto-friendly approach, encouraging innovation and investment in the digital asset space. This regulatory shift has paved the way for firms like VanEck to explore new opportunities in tokenized assets and blockchain-based projects.
Final Thoughts
The launch of VanEck’s new Avalanche ecosystem fund marks a significant milestone in the evolution of blockchain-based investment products. By focusing on Avalanche’s RWA ecosystem, VanEck is positioning itself at the forefront of a transformative movement. This new direction prioritizes real-world utility over speculative hype.
With its robust infrastructure and growing adoption among institutional players, Avalanche is poised to play a pivotal role in shaping the future of tokenized economies. As VanEck continues to expand its offerings, investors can expect more innovative funds. These funds will bridge the gap between traditional finance and decentralized technologies.
For now, all eyes remain on the PurposeBuilt Fund. Its potential to unlock new avenues of growth in the rapidly evolving Web3 landscape is notable.
