"The PurposeBuilt Fund" will focus on long-term value, investing in practical projects on Avalanche.
Asset management giant VanEck announced on May 21 its plan to launch a private digital asset fund named 'VanEck PurposeBuilt Fund' in June, specifically investing in projects built on the Avalanche blockchain. The fund will be managed by the 'VanEck Digital Assets Alpha Fund (DAAF)' team, which oversees more than $100 million (approximately NT$3 billion) in assets, and will be open only to qualified investors.
VanEck Digital Assets Alpha Fund portfolio manager Pranav Kanade stated: "The next wave of value in the cryptocurrency industry will come from real businesses, not more infrastructure. Avalanche has become a magnet for thoughtful entrepreneurs. Through the VanEck PurposeBuilt Fund, we will bring capital and belief to founders creating lasting value, rather than chasing short-term fads."
VanEck pointed out that the main challenge in the current cryptocurrency market is that founders utilizing blockchain technology to establish legitimate businesses are often overlooked in a short-term speculative environment. The new fund will strategically provide long-term support to help mission-driven entrepreneurs maintain long-term goals and effectively scale their businesses.
The fund will diversify investments across the Web3 industry, with idle funds shifting towards RWA products.
According to VanEck's statement, the PurposeBuilt Fund will mainly invest in liquid tokens and venture capital-backed projects before and after token generation events, covering multiple Web3 industries such as gaming, financial services, payments, and artificial intelligence. The fund will adopt a fundamentals-oriented investment strategy, emphasizing long-term results.
It is worth noting that the fund's idle capital will be deployed into real-world asset (RWA) products on Avalanche, including tokenized money market funds, which will not only maintain liquidity but also promote the activity of the on-chain economy.
Ava Labs Chief Business Officer John Nahas commented: "We are witnessing a shift in the cryptocurrency market from speculative hype to genuine utility and sustainable token economies. The PurposeBuilt Fund aims to provide the necessary long-term capital and strategic confidence for developers leading this transformation while reinforcing Avalanche's advantage as a serious base for meaningful on-chain businesses."
This initiative echoes VanEck's launch of its first tokenized fund, the 'VanEck Treasury Fund (VBILL)', on May 13, which operates as a money market fund backed by U.S. Treasury bonds and has been issued on Avalanche, Ethereum, Solana, and BNB Chain.
The Avalanche ecosystem is thriving, with user activity reaching an all-time high.
As VanEck announced the new fund, the Avalanche network is experiencing significant growth. According to Artemis data, the number of daily active addresses on Avalanche surged in May, reaching the highest level in the past three years.
Source: Artemis The number of daily active addresses on Avalanche surged in May, reaching the highest level in the past three years.
Artemis charts show that the number of daily active addresses in May ranged between 50,000 and 400,000, with nearly 80% being new users. Meanwhile, the activity of returning users also increased by about 30% compared to the average level of the previous days.
This user growth comes alongside a series of positive developments for Avalanche in May, including FIFA's decision to build its own Layer 1 blockchain on Avalanche to enhance its Web3 project. Additionally, Avalanche launched a $140 million blockchain ecosystem 'Fusion' on May 20, aimed at providing specialized business objectives for developers and enterprises.
Further Reading
FIFA teams up with Avalanche! Building a dedicated blockchain, is a Web3 football platform on the way?
Nevertheless, data from DefiLlama shows that Avalanche's total value locked (TVL) currently stands at only $1.5 billion, down 86% from its historical peak, indicating that the network still faces challenges in attracting retail investors.
'VanEck to launch new fund in June! Focusing on the Avalanche ecosystem, idle funds will be allocated to RWA' This article was first published on 'Crypto City'.
