Global asset manager VanEck has announced the launch of a new digital assets fund focused on supporting real-world applications on the Avalanche blockchain. The PurposeBuilt Fund, scheduled to go live in June, will invest in tokenized businesses that prioritize long-term value creation over speculative hype.
The fund will be managed by the team behind the VanEck Digital Assets Alpha Fund, which currently oversees over $100 million in assets and has built a reputation for disciplined investment strategies since its 2022 debut.
Backing Builders, Not Buzz
According to Pranav Kanade, portfolio manager at VanEck, the PurposeBuilt Fund reflects a shift away from infrastructure-focused plays and short-lived trends in the crypto space. Instead, the firm aims to direct capital to “real businesses” that are leveraging Avalanche for practical use cases in sectors like gaming, AI, payments, and financial services.
“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Kanade.
“Avalanche has become a magnet for thoughtful builders, and with the PurposeBuilt Fund, we’re bringing capital and conviction to the founders creating lasting value, not chasing momentum.”
On-Chain Capital Deployment and RWA Integration
The PurposeBuilt Fund will not only invest in liquid tokens and venture-backed projects after token generation events but will also deploy idle capital into Avalanche-native real-world asset (RWA) products. This includes tokenized money market funds, which provide an avenue for secure and efficient on-chain capital utilization.
The fund’s design supports projects that reflect the evolving tokenization landscape, particularly those integrating blockchain into traditional business models, making Avalanche’s high-throughput and low-cost infrastructure a natural fit.
Institutional Momentum Building on Avalanche
VanEck’s announcement adds to a growing wave of institutional activity around Avalanche. In March, Grayscale filed a proposal to convert its Avalanche Trust into a spot ETF, signaling rising investor demand for regulated exposure to AVAX. The move is pending SEC approval but underscores Avalanche’s increasing role in blockchain finance.
Other initiatives, like Solv Protocol’s RWA-backed token launch on Avalanche, further validate the network’s strategic shift toward real-world financial applications.
A Vote of Confidence in Avalanche’s Utility
The VanEck PurposeBuilt Fund is a clear endorsement of Avalanche’s ecosystem maturity, focusing on value-driven crypto projects and on-chain financial products. As the digital asset industry transitions from hype to utility, VanEck’s latest initiative represents a significant step in supporting sustainable innovation.
