VanEck to deploy $100 million in Avalanche ecosystem fund

VanEck plans to launch a private digital assets fund in June focused on the Avalanche (CRYPTO:AVAX) blockchain ecosystem.

The new fund, named the VanEck PurposeBuilt Fund, will be limited to accredited investors.

It will invest in liquid tokens and venture-backed Web3 projects across sectors such as gaming, financial services, payments, and artificial intelligence.

VanEck stated that idle capital will be placed in real-world asset (RWA) products on Avalanche, including tokenised money market funds.

The fund will be managed by the team behind VanEck’s Digital Assets Alpha Fund (DAAF), which oversees over $100 million in net assets as of May 21.

“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, portfolio manager for DAAF.

RWAs have emerged as a fast-growing segment in crypto, reflecting investor interest in assets with practical economic use.

The PurposeBuilt Fund aligns with a broader industry trend in which asset managers launch thematic funds targeting growth in Web3.

Earlier in May, VanEck introduced an actively managed ETF focused on digital economy assets.

In April, the firm launched a passive ETF tracking companies involved in the crypto sector.

VanEck and other asset managers have filed over 70 requests with the U.S. Securities and Exchange Commission (SEC) to list additional crypto ETFs.

These filings follow a shift in regulatory tone under President Donald Trump’s administration, which has been perceived as more favorable toward digital assets.

Avalanche has become a hub for institutional crypto development, especially in real-world assets.

Its subnet architecture enables the deployment of Ethereum-compatible smart contracts in permissioned environments.

On May 16, Solv Protocol launched a yield-bearing Bitcoin token on Avalanche targeting institutional investors.

Avalanche’s total value locked (TVL) stood at approximately $1.5 billion as of May 21, according to DefiLlama.

“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.

At the time of reporting, the Avalanche (AVAX) price was $23.93.