VanEck Introduces New Investment Fund Based on Avalanche (AVAX)

# VanEck Targets Real-World Asset Investments via Blockchain-Based Web3 Fund VanEck has announced plans to allocate idle capital to on-chain Real-World Asset (RWA) projects, according to a Cointelegraph report on May 21. The asset management firm also plans to launch a private digital asset fund in June, focusing on tokenized Web3 initiatives built on the Avalanche blockchain network. The forthcoming VanEck PurposeBuilt Fund will cater exclusively to accredited investors, intending to invest in liquid tokens and venture-backed projects in diverse Web3 sectors such as gaming, financial services, payments, and artificial intelligence (AI). VanEck stated that idle capital would be channeled toward Avalanche's RWA products, especially tokenized short-term financial instruments. The fund will be managed by the same team that oversees VanEck Digital Assets Alpha Fund (DAAF), which, as of May 21, 2023, manages over $100 million in net assets. DAAF Portfolio Manager Pranav Kanade emphasized the transformative potential of real-world applications, stating, “The next wave of crypto value creation will come from practical business solutions, not just more infrastructure.” # Thematic Cryptocurrency Investment Strategy The PurposeBuilt Fund represents the latest addition to VanEck’s series of funds targeting high-growth segments in the Web3 space. It highlights the increasing interest from asset managers for thematic investments in blockchain and cryptocurrency projects. Earlier this month, on May 14, VanEck launched an actively managed exchange-traded fund (ETF) aimed at providing exposure to the digital economy through equities and financial products. In April, the firm introduced another ETF focusing on a passive index of companies engaged in the cryptocurrency industry. VanEck is among several asset managers actively seeking approval from the U.S. Securities and Exchange Commission (SEC) for cryptocurrency ETFs. To date, over 70 such proposals have been filed, with one contributing factor being the policy shift under the Trump administration, which eased regulatory attitudes toward crypto. # Avalanche's Real-World Asset Ecosystem Avalanche has emerged as a prominent hub for Real-World Assets and institutional-grade crypto projects. Its interconnected subnetworks, known as "Subnets," enable institutions to deploy Ethereum-style smart contracts within controlled environments. On May 16, Solv Protocol launched yield-bearing Bitcoin (BTC) tokens for institutional investors via the Avalanche blockchain. According to DeFiLlama, Avalanche had a Total Value Locked (TVL) of approximately $1.5 billion as of May 21, 2023. “A meaningful shift is occurring from speculative frenzy to practical utility and sustainable token economics,” observed John Nahas, Chief Business Officer at Ava Labs. VanEck’s latest initiatives underscore the industry’s pivot towards real-world utility and suggest a growing institutional appetite for blockchain solutions tied to tangible economic activity.