In a bold move that signals growing institutional confidence in blockchain utility beyond speculation, asset management giant VanEck has announced the upcoming launch of a private digital assets fund focused on the Avalanche ecosystem. Slated for a June debut, the VanEck PurposeBuilt Fund will aim to capture opportunities in the rapidly evolving world of tokenized real-world assets (RWAs) and Web3 applications.
This latest initiative by VanEck underscores a strategic pivot within the crypto investment landscape—from purely infrastructure-based bets to backing applications with tangible use cases. Unlike earlier crypto cycles dominated by hype and abstract technology, this fund is all about backing functional, scalable businesses already demonstrating real-world traction.
The PurposeBuilt Fund will be accessible exclusively to accredited investors and will concentrate its portfolio on liquid tokens and venture-stage Web3 startups. Areas of focus include gaming, AI, payments, and decentralized finance—all built on or integrated with Avalanche’s high-throughput, low-cost blockchain platform.
According to a statement shared with Cointelegraph, the fund’s idle capital won’t be left sitting idle. Instead, it will be deployed on-chain into Avalanche-native real-world asset products, including tokenized money market funds—a rapidly growing segment within the crypto space.
“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, portfolio manager of the fund. His team also manages VanEck’s Digital Assets Alpha Fund (DAAF), which is currently overseeing more than $100 million in net assets. Their experience navigating volatile digital markets will likely be a key advantage as they dig deeper into real-world use cases.
VanEck’s move is part of a broader trend among asset managers building thematic crypto funds tailored to different blockchain ecosystems. Just earlier this month, VanEck launched an actively managed ETF aimed at capturing the growth of the broader digital economy. That followed the April release of another ETF tied to a passive index of crypto-focused companies.
Across the board, asset managers are jockeying for position in what could be the next wave of crypto integration into traditional finance. VanEck and its competitors have filed with the U.S. Securities and Exchange Commission (SEC) for approval to list more than 70 crypto ETFs. This surge in filings is reportedly tied to a changing regulatory tone in Washington following President Donald Trump’s return to the White House, which has brought a more crypto-friendly stance to the SEC.
Avalanche, meanwhile, is proving to be more than just another layer-1 blockchain. With roughly $1.5 billion in total value locked (TVL) as of May 21—according to DefiLlama—the platform has carved out a niche as a preferred destination for RWA integration and institutional-grade crypto solutions. The ecosystem’s subnet architecture allows financial institutions to operate Ethereum-compatible smart contracts in permissioned environments, an attractive feature for firms seeking the benefits of DeFi without the regulatory gray areas.
A recent example of Avalanche’s institutional momentum is Solv Protocol’s launch of a yield-bearing Bitcoin token on the network—specifically targeting institutional investors looking for yield and stability within the crypto framework.
John Nahas, Chief Business Officer at Ava Labs, which oversees Avalanche’s development, summed up the shift: “We’re seeing a move away from speculative hype toward real utility and sustainable token economies.”
With VanEck’s new PurposeBuilt Fund, that vision is getting a significant vote of confidence. By targeting projects that bridge traditional finance and decentralized innovation, the firm is betting that Avalanche’s unique positioning can deliver long-term value—especially as tokenization and RWA integration become central themes in the next era of blockchain adoption.
