VanEck’s Avalanche Fund: The Next Big Thing or Just Another Iceberg?

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In a move that can only be described as “brave” or perhaps “slightly mad,” VanEck has decided to launch a private digital assets fund this June. This fund, which is as exclusive as a secret society of cats, will target tokenized Web3 projects built on the Avalanche blockchain network. Yes, that’s right, the Avalanche—where snowflakes are not the only things that can fall rapidly!

The VanEck PurposeBuilt Fund, which sounds like something a wizard might conjure up, is only available to accredited investors. It aims to invest in liquid tokens and venture-backed projects across various Web3 sectors, including gaming, financial services, payments, and artificial intelligence. Because who doesn’t want their money to be as liquid as a well-brewed cup of tea? ☕️

According to VanEck, idle capital will be deployed into Avalanche (AVAX) real-world asset (RWA) products, including tokenized money market funds. Because, of course, what better way to spend your money than on something that sounds like it was invented by a particularly ambitious accountant?

The fund will be managed by the same team behind VanEck’s Digital Assets Alpha Fund (DAAF), which oversees more than $100 million in net assets as of May 21. That’s a lot of zeros, and not the kind you find in a magician’s hat!

“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, portfolio manager for DAAF. This is a bit like saying the next big thing in cooking will come from actual food rather than just fancy kitchen gadgets. 🍳

Thematic crypto funds

VanEck’s PurposeBuilt Fund is the latest in a series of funds from the asset manager and its rivals, all designed to offer exposure to projects and companies in the fast-growing segments of Web3. It’s like a buffet, but instead of food, you get a smorgasbord of digital assets!

On May 14, VanEck launched a new actively managed exchange-traded fund (ETF) to invest in stocks and financial instruments providing exposure to the digital economy. Because if there’s one thing we need more of, it’s more acronyms! 📈

In April, they launched another ETF investing in a passive index of companies operating in the crypto space. It’s like watching a game of Monopoly, but instead of properties, they’re buying up digital tokens!

Asset managers like VanEck are now requesting the US Securities and Exchange Commission’s (SEC) permission to list upward of 70 crypto ETFs. That’s right, 70! It’s like they’re trying to set a world record for the most ETFs in a single room!

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Avalanche RWA ecosystem

Avalanche has emerged as a hub for real-world assets (RWAs) and other institutional-oriented crypto projects. It’s like the trendy café of the blockchain world, where everyone wants to be seen sipping their digital lattes!

Its interrelated networks, called subnets, allow institutions to run Ethereum-style smart contracts in a controlled environment. On May 16, Solv Protocol launched a yield-bearing Bitcoin token on the Avalanche blockchain, targeting institutional investors. Because who wouldn’t want their Bitcoin to earn interest while they sleep? 💤

Avalanche has around $1.5 billion in total value locked (TVL) as of May 21, according to data from DefiLlama. That’s a lot of value, and it’s not just the kind you find in your grandmother’s attic!

“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. This is a bit like saying we’re moving from fairy tales to practical manuals—exciting, but where’s the magic? ✨

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2025-05-22 01:38