VanEck to Launch Long-Term Digital Assets Fund Focused on Avalanche

Asset management firm VanEck has announced the launch of its PurposeBuilt Fund, a long-term digital assets investment vehicle centered on the Avalanche blockchain. The fund aims to support tokenized businesses that prioritize real-world utility and long-term value over speculative, hype-driven projects.

PurposeBuilt Fund: A Strategic Focus on Avalanche

The PurposeBuilt Fund, set to launch in June, will invest in businesses building on the Avalanche blockchain. These investments will primarily target sectors such as gaming, payments, artificial intelligence (AI), and financial services. The fund will focus on projects around or after their token generation events, ensuring a greater emphasis on established ventures with clear utility.

Additionally, the fund plans to deploy unused capital on-chain using Avalanche-native real-world asset products, including tokenized money market funds. This approach not only supports the Avalanche ecosystem but also enhances capital efficiency for investors.

A Shift Toward Real Businesses in Crypto

Pranav Kanade, portfolio manager of the VanEck Digital Assets Alpha Fund, highlighted the importance of investing in businesses that create lasting value. According to Kanade, the next wave of growth in the cryptocurrency sector will come from “real businesses, not more infrastructure.” The PurposeBuilt Fund aligns with this vision by focusing on projects that deliver tangible benefits rather than chasing fleeting trends.

“Avalanche has become a magnet for thoughtful builders, and with the VanEck PurposeBuilt Fund, we’re bringing capital and conviction to the founders creating lasting value, not chasing momentum.”

Experienced Management and Institutional Interest

The PurposeBuilt Fund will be managed by the same team behind the VanEck Digital Assets Alpha Fund, which currently oversees over $100 million in assets. Launched in 2022, the Alpha Fund has successfully navigated the evolving cryptocurrency landscape, leveraging its expertise to identify high-potential opportunities.

The announcement comes as institutional interest in Avalanche continues to grow. For instance, Grayscale recently filed to convert its Avalanche Trust, launched in 2024, into a spot exchange-traded fund (ETF). This move underscores the increasing recognition of Avalanche as a robust blockchain platform within the institutional investment community.

Key Takeaways for Investors

For those interested in the cryptocurrency market, the PurposeBuilt Fund represents a shift toward more sustainable and value-driven investments. By focusing on tokenized businesses with practical applications, the fund offers a unique opportunity for investors looking to diversify their portfolios beyond speculative assets.

Here are some reasons why this fund could appeal to investors:

  • Sector Diversification: Investments span across gaming, payments, AI, and financial services.
  • Focus on Long-Term Value: Prioritizes projects with real-world utility over hype.
  • On-Chain Capital Deployment: Enhances returns through Avalanche-native real-world asset products.
  • Experienced Management: Operated by a team with a proven track record in digital asset investments.

With its strategic focus on the Avalanche ecosystem and commitment to long-term growth, the VanEck PurposeBuilt Fund could serve as a compelling option for investors seeking exposure to the evolving digital asset space.

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