VanEck is set to introduce a new chapter in the world of digital assets with the imminent launch of its PurposeBuilt Fund in June 2025. This private fund, specifically crafted for tokenized Web3 projects on the Avalanche blockchain, marks a significant move by the asset manager to delve into the burgeoning sectors of gaming, financial services, payments, and artificial intelligence. Aimed at accredited investors, this fund will strategically invest in liquid tokens and venture-backed projects, while also deploying idle capital into Avalanche’s real-world asset (RWA) products, such as tokenized money market funds.
A Calculated Bet on Avalanche and Web3
Avalanche, often recognized for its innovative approach to blockchain technology, has been rapidly evolving into a stronghold for institutional-oriented crypto projects. The Avalanche network, with its unique subnet architecture, facilitates the operation of Ethereum-like smart contracts within a controlled environment, attracting a slew of institutional investors. As of May 21, 2025, Avalanche boasts a total value locked (TVL) of approximately $1.5 billion, according to data from DefiLlama.
Pranav Kanade, the portfolio manager for VanEck’s Digital Assets Alpha Fund (DAAF), which currently manages over $100 million in net assets, emphasized a shift in focus: “The next wave of value in crypto will come from real businesses, not more infrastructure.” This perspective mirrors a broader industry trend moving away from speculative ventures towards projects with tangible utility and sustainable economies. John Nahas, Chief Business Officer at Ava Labs, concurs, noting a discernible shift towards real utility in the crypto space. This shift is further explored in our recent coverage of how restaking can make DeFi more secure for institutional traders.
Thematic Funds and Regulatory Landscape
VanEck’s new fund is the latest in a series of strategic initiatives aimed at capturing the growth potential within the digital economy. Earlier in May, the firm unveiled an actively managed exchange-traded fund (ETF) designed to invest in stocks and other financial instruments linked to the digital economy. This comes on the heels of an April launch of another ETF focusing on a passive index of companies in the crypto space.
The asset management industry is witnessing a wave of crypto ETF filings, with VanEck and its peers seeking the green light from the U.S. Securities and Exchange Commission (SEC). This rush aligns with a broader regulatory shift following President Donald Trump’s softened stance on crypto regulations since he took office in January.
Avalanche’s RWA Ecosystem: A New Frontier
The emphasis on real-world assets within the Avalanche ecosystem is not just a strategic choice but a reflection of a broader market trend. RWAs are rapidly becoming one of the fastest-growing segments in the crypto industry. The launch of a yield-bearing Bitcoin token by Solv Protocol on the Avalanche blockchain on May 16 highlights the network’s appeal to institutional investors. This trend is similar to the strategies seen in the Tokenized Apollo Credit Fund’s DeFi debut with a levered-yield strategy.
The move by VanEck to focus on RWAs underscores a significant pivot in the crypto space, where the emphasis is increasingly on utility and real-world applications rather than mere speculative gains. As RWAs continue to gain traction, the potential for tokenized stocks to surpass $1 trillion in market capitalization remains a tantalizing prospect, according to industry executives.
Looking Forward: Unanswered Questions and Emerging Trends
VanEck’s PurposeBuilt Fund is poised to make waves in the digital asset landscape, yet it also raises questions about the future trajectory of the crypto market. Will the emphasis on real-world assets usher in a new era of stability and growth for the industry? Or could the inherent volatility of the crypto market present unforeseen challenges?
As the fund prepares to launch, the industry will be watching closely to see how VanEck navigates the complexities of tokenized Web3 projects and the evolving regulatory landscape. The coming months will undoubtedly be pivotal, not only for VanEck but for the broader crypto ecosystem as it seeks to balance innovation with sustainability.
Source
This article is based on: VanEck to launch Avalanche ecosystem fund
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
