Major asset manager VanEck has revealed a new private digital assets fund specifically for Avalanche-based businesses. The VanEck Purposebuilt Fund will launch on 10 June.
According to the press release, the fund will utilize Avalanche-native real-world asset (RWA) products – including tokenized money market funds – to deploy the capital.
The novel fund will provide the capital and support for liquid tokens, venture-backed projects, and scalable businesses that are building on the world’s 18th-largest chain and launching tokens with long-term utility and value in mind. The projects will hail from across industries, including finance, payments, gaming, and AI. They’ll receive the investment either close to or after a Token Generation Event.
Therefore, the company says that “the Purposebuilt Fund reflects VanEck’s conviction in the ‘GDP onchain’ thesis.” This means that blockchain “will eventually be core to global economic and financial systems and that the projects that align with this vision will be the most durable.”
Additionally, Pranav Kanade, Portfolio Manager of VanEck Digital Asset Alpha Fund (DAAF), argues that real businesses, not additional infrastructure, will bring about the next wave of value for the crypto sector.
Moreover, VanEck has noted “a growing concentration of serious builders” using the Avalanche network for real-world applications, generating economic activity onchain. These teams build in payments, FinTech, DeFi, RWAs, AI, and gaming. They’re also providing enterprise-grade products already adopted by Web2 platforms and traditional institutions.
Meanwhile, the VanEck Purposebuilt Fund seeks capital appreciation through investments in digital assets with market capitalizations above $100 million. It may invest in RWAs, digital asset projects, and Avalanche ecosystem-related companies. It may also employ staking, yield-farming, and investments across centralized and decentralized platforms, the announcement says.
VanEck Sees ‘Shift From Speculative Hype To Real Utility’
The team behind the DAAF will also manage the new VanEck Purposebuilt Fund. The team says that DAAF is “one of the strongest-performing directional liquid token funds in the market.” It has over $100 million in assets under management.
The team argues that one of the issues the crypto market faces is the difficulty for legitimate blockchain-powered businesses to “stand out in an environment dominated by short-term speculation. This distorts incentives, undermines token credibility, and slows real adoption.” The new fund aims to solve this, VanEck claims.
Furthermore, John Nahas, Chief Business Officer at Ava Labs, described Purposebuilt as a pivotal moment for the ecosystem. It reinforces Avalanche as “the home for serious founders who are scaling real businesses and driving meaningful onchain adoption.”
Per Nahas, there is “a shift away from speculative hype toward real utility and sustainable token economies.” Therefore, Purposebuilt’s goal is to “bring the kind of long-term capital and strategic conviction that builders need to lead that shift.”
At the time of writing, AVAX trades at $22.65. It is up 2.8% in a day and 10% in a month. The price has decreased by 12% in a week and 44% in a year.
The coin hit its all-time high of $144.96 in November 2021, falling 84% since.
Meanwhile, the company notes that the VanEck Purposebuilt Fund and the VanEck Digital Assets Alpha Fund are not registered investment companies under the Investment Company Act of 1940 and not subject to the same regulatory requirements as mutual funds or ETFs.
The announcement states that, as of 30 April 2025, VanEck managed $116.6 billion in assets, including mutual funds, ETFs, and institutional accounts. In March and April this year, it filed for Avalanche and BNB ETFs, respectively. In May, VanEck joined hands with Securitize, a company specializing in real-world asset (RWA) tokenization, to launch a US treasuries-backed tokenized fund on Avalanche, Ethereum, and Solana.
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