VanEck, an asset manager globally, plans launching soon a private digital asset fund that is exclusively for projects on the Avalanche (AVAX) blockchain. The VanEck PurposeBuilt Fund will, in June 2025, deploy capital to tokenized real-world asset (RWA) projects and venture-backed firms building significant Web3 apps.
VanEck’s new fund isn’t like many that chase temporary hype. It is to support the entrepreneurs and developers working on real things.
Investments will involve liquid tokens and early-stage investments in gaming, financial services, payments, and artificial intelligence.
The Asset Managers, who also manage VanEck’s Digital Assets Alpha Fund (DAAF), will manage this fund. At present, DAAF manages more than $100 million. This team has a history of supporting real-world-use-case tokens that have proven to be scalable. Their focus will now be squarely on Avalanche, a blockchain that’s gaining traction for its speed, low fees, and great ecosystem.
Avalanche has become a major centre for real-world assets and institutional cryptocurrency projects. Fleek Network has a unique subnet architecture that allows enterprises to run Ethereum-compatible smart contracts. Avalanche has almost $1.5 billion in total value locked (TVL), and supports a growing range of applications, including DeFi and AI.
Pranav Kanade, portfolio manager at VanEck Digital Assets has clearly stated that while the next wave of value will come from real businesses, and not more infrastructure. The industry is starting to learn this lesson.
The PurposeBuilt Fund plans to invest in Avalanche-native real world asset (RWA) products like tokenized money market funds to create liquidity and drive real economic activity. VanEck wants to provide patient, conviction-driven capital to builders whose focus is on utility and adoption and not market pump and dumps.
Industry leaders see this as a pivotal moment. According to John Nahas, Chief Business Officer at Ava Labs, the fund helps speed up the realisation of the blockchain industry. He said that the ecosystem of Avalanche is attracting institutions and traditional finance players apart from crypto-users.
VanEck’s entry into Avalanche’s RWA market indicates rising institutional faith in the network’s ability. This follows a larger trend where asset managers are trying to offer targeted exposure to promising Web3 sectors through thematic funds and ETFs. Avalanche’s latest push could help the blockchain regain his momentum while Ethereum and Solana compete.
To summarize, VanEck’s PurposeBuilt Fund represents a significant endorsement of Avalanche’s real-world asset capabilities and the developing nature of digital financial systems. The fund will drive sustainable growth in the crypto space by supporting projects that offer real world use case and long term value.
