VanEck to Launch New Fund on Avalanche to Back Gaming, DeFi

Global asset manager VanEck is placing a huge bet on Avalanche with the planned launch of its private digital assets fund dubbed “VanEck PurposeBuilt Fund.” The asset manager noted that the fund will focus on Avalanche-based businesses as well as support the launch of tokens built for long-term utility. Set to go live in June, the new fund is designed for accredited investors looking to back utility-driven Web3 projects.

VanEck Avalanche Fund to Focus on DeFi, AI, RWA

The VanEck Avalanche fund will focus on thriving sections of the Web3 market, including payments, artificial intelligence (AI), gaming, DeFi, and RWA. According to the asset manager, the fund will target venture-backed projects and liquid tokens, focusing on or after their token generation event (TGE).

VanEck says the Avalanche fund will embrace a fundamentals-first approach. This means it won’t rely on short-term momentum as an investment factor. Instead, it will back projects building stable token economies as well as long-term value.

Additionally, the fund will make use of its idle capital by allocating it to Avalanche-based RWA products such as tokenized money market funds. This strategy will keep the fund’s capital working as well as deepen liquidity. It would also encourage engagement within Avalanche’s on-chain community.

Why Avalanche?

Avalanche is one of the fastest-growing developer ecosystems in crypto. The DeFi project encourages developer activity with multiple grants and funds, including a recent $100 million fund for developers to build scalable apps with utility.

This strong developer community, according to VanEck, has made Avalanche “a magnet for thoughtful builders.” Pranav Kanade, Portfolio Manager at VanEck, says the new fund will provide “capital to support that shift.”

On-chain data supports VanEck’s trust in Avalanche. The network recently saw nearly 3 million contracts deployed in one week; its second-largest surge ever. At the same time, around 1,500 first-time developers pushed code, the highest since March 2024. These numbers reflect Avalanche’s role as a leading Web3 builder.

Furthermore, investing in Avalanche-based projects mirrors VanEck’s conviction that value-based crypto projects will drive the next wave of adoption. This view is echoed by John Nahas, Chief Business Officer at Ava Labs, who emphasized that Avalanche plays a huge role in this shift.

“We’re seeing a shift away from speculative hype toward real utility and sustainable token economies, and the VanEck PurposeBuilt Fund aims to bring the kind of long-term capital and strategic conviction that builders need to lead that shift. This fund reinforces the strength of Avalanche as the home for serious founders who are scaling real businesses and driving on-chain adoption,” Nahas said.

This view aligns with the broader trend where Avalanche is seeing a massive inflow of projects building across gaming, DeFi, AI, and RWA.

These solutions are gaining traction within Web3 and traditional institutions. The PurposeBuilt Fund will provide these builders with leverage to scale their products.

DAAF Team to Manage the Fund

VanEck says the team behind its VanEck Digital Assets Alpha Fund (DAAF) will oversee the Avalanche fund. DAAF is a top-performing liquid fund managing around $100 million in assets.

The new funds reflect VanEck’s belief that blockchain technology will power the global economy. Notably, the PurposeBuilt Fund is not VanEck’s first blockchain-focused venture. The asset manager recently launched a new exchange-traded fund (ETF) to offer exposure to the digital market.

With its strategy on fundamentals over hype, the new fund could be the spark that accelerates a new generation of innovation on Avalanche.

Disclaimer: The content may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.