VanEck Prepares to Launch PurposeBuilt Fund to Invest in Real-World Applications on Avalanche

Managed by VanEck’s Digital Assets Alpha Fund investment team, the VanEck PurposeBuilt Fund will invest in Avalanche ecosystem founders building scalable businesses with long-term token utility. The VanEck PurposeBuilt Fund is available to qualified purchasers only.

/EIN News/ -- The information contained in the private placement memorandum (the “PPM”) for the VanEck PurposeBuilt Fund, L.P. is not complete and may be changed. Van Eck may not solicit subscriptions until the limited partnership’s interests are available for purchase. The private placement memorandum is not an offer or a solicitation for subscriptions referenced therein and is not a solicitation for an offer or solicitation for subscriptions in any state where the offer is not permitted. Please view the PPM here: VanEck PurposeBuilt Fund Private Placement Memorandum.

NEW YORK, May 21, 2025 (GLOBE NEWSWIRE) -- VanEck, a leading asset manager, is today announcing the upcoming launch of the VanEck PurposeBuilt Fund, a private digital assets fund that will invest in businesses building on Avalanche and launching tokens designed to create long-term value and utility. The Fund is expected to launch in June 2025.

The Fund will invest in liquid tokens and venture-backed projects—spanning industries that include gaming, financial services, payments and AI—typically around or after a Token Generation Event, with a fundamentals-first strategy focused on long-term outcomes. Idle capital will be deployed onchain through Avalanche-native real-world asset (RWA) products, including tokenized money market funds, to maintain liquidity while reinforcing the broader onchain economy.

The Fund will be managed by the team behind the VanEck Digital Assets Alpha Fund (DAAF), one of the strongest-performing directional liquid token funds in the market, with over $100 million in assets under management. Since launching in 2022, DAAF has focused on investing in liquid tokens tied to scalable products, economic alignment and real adoption. This same approach is being applied to the PurposeBuilt Fund, with a focus on the Avalanche ecosystem, currently valued at nearly $50 billion. The team sees a growing concentration of serious builders leveraging the Avalanche network to pioneer new markets, while generating onchain economic activity. The PurposeBuilt Fund reflects VanEck’s conviction in the “GDP onchain” thesis: that blockchain technology will eventually be core to global economic and financial systems and that the projects that align with this vision will be the most durable.

“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, Portfolio Manager of VanEck Digital Assets Alpha Fund. “Avalanche has become a magnet for thoughtful builders, and with the VanEck PurposeBuilt Fund, we’re bringing capital and conviction to the founders creating lasting value, not chasing momentum.”

The Fund is designed to address a persistent challenge in today’s crypto market. Founders launching legitimate blockchain-enabled businesses often struggle to stand out in an environment dominated by short-term speculation. This distorts incentives, undermines token credibility and slows real adoption. The Fund offers strategic, differentiated capital and long-term alignment, empowering mission-driven founders to stay focused, remain long-term oriented and scale effectively.

“VanEck’s launch of the PurposeBuilt Fund marks a pivotal moment for the Avalanche ecosystem,” commented John Nahas, Chief Business Officer at Ava Labs. “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 meaningful onchain adoption.”

Avalanche continues to attract teams creating real-world applications across sectors, including DeFi, RWAs, AI, gaming, payments and FinTech. These builders are delivering enterprise-grade products already being adopted by web2 platforms and traditional institutions. The VanEck PurposeBuilt Fund ensures they have the capital, support and signal they need to succeed.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends — including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 — that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of 4/30/2025, VanEck managed approximately $116.6 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.

About Avalanche

Avalanche is an ultra-fast, low-latency blockchain platform designed for builders who need high performance at scale. The network’s architecture allows for the creation of sovereign, efficient and fully interoperable public and private layer 1 (L1) blockchains which leverage the Avalanche Consensus Mechanism to achieve high throughput and near-instant transaction finality. The ease and speed of launching an L1, and the breadth of architectural customization choices, make Avalanche the perfect environment for a composable multi-chain future.

Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building decentralized applications (dApps). With its combination of speed, flexibility, and scalability, Avalanche is the platform of choice for innovators pushing the boundaries of blockchain technology.

General Disclosures

This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees. 

Important Disclosures – VanEck PurposeBuilt Fund and VanEck Digital Assets Alpha Fund

The VanEck PurposeBuilt Fund and the VanEck Digital Assets Alpha Fund (together, the “Funds”) are not registered investment companies under the Investment Company Act of 1940 and are therefore not subject to the same regulatory requirements as mutual funds or ETFs. Both Funds rely on an exemption from registration as Commodity Pool Operators under CFTC Rule 4.13(a)(3) and are subject to related trading limitations, investor suitability requirements, and offering and marketing restrictions.

VAN ECK ABSOLUTE RETURN ADVISERS CORPORATION (“VEARA”), THE INVESTMENT MANAGER OF THE FUNDS, IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. VEARA HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN THE FUNDS. ALTHOUGH NFA HAS JURISDICTION OVER VEARA, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY VEARA.

Each Fund is available to Qualified Purchasers Only. Prospective investors should carefully review the respective Private Placement Memorandum (“PPM”) before investing. There is no guarantee either Fund will achieve its investment objectives, and investors may lose all or a substantial portion of their investment. Past performance is not indicative of future results.

Both Funds pursue speculative investment strategies and involve significant risks. Individual investor performance may vary materially due to factors such as investment timing, new issue participation, expense structures, and the impact of loss carryforwards. Investor performance will be reflected in monthly statements provided by the Administrator.

The VanEck PurposeBuilt Fund seeks capital appreciation through investments in Digital Assets, tokenized real world assets (“RWAs”), Digital Asset projects, and companies associated with the Avalanche ecosystem. Investments include equity, equity-like, and debt instruments of early-stage blockchain and Digital Asset companies. The Fund may employ staking, yield-farming, and investments across centralized and decentralized platforms.

The VanEck Digital Assets Alpha Fund seeks capital appreciation by investing in 5 to 30 Digital Assets with high perceived upside relative to current valuations and generally with market capitalizations above $100 million. It also invests in public and private securities of Digital Asset companies. The Fund intends to generate yield through staking and DeFi-based lending, maintaining a general allocation of 70–90% in Digital Assets with the remainder focused on yield-generating strategies.

VanEck Purpose Build Fund and VanEck Digital Assets Alpha Fund: Investments may include a wide variety of digital instruments and structures, including cryptocurrencies, stablecoins, NFTs, tokens, RWAs, DeFi protocols, DAOs, ICOs, SAFTs, SAFEs, token warrants, and synthetic assets. These technologies are new, may be untested, and are subject to competitive pressures, adoption challenges, and technological obsolescence.

General Digital Asset Risk Disclosures

Cryptocurrencies and digital assets are not suitable for all investors. Investments in digital assets and Web3 companies are highly speculative and involve a high degree of risk. These risks include, but are not limited to: the technology is new and many of its uses may be untested; intense competition; slow adoption rates and the potential for product obsolescence; volatility and limited liquidity, including but not limited to, inability to liquidate a position; loss or destruction of key(s) to access accounts or the blockchain; reliance on digital wallets; reliance on unregulated markets and exchanges; reliance on the internet; cybersecurity risks; and the lack of regulation and the potential for new laws and regulation that may be difficult to predict. Moreover, the extent to which Web3 companies or digital assets utilize blockchain technology may vary, and it is possible that even widespread adoption of blockchain technology may not result in a material increase in the value of such companies or digital assets. 

Digital asset prices are highly volatile, and the value of digital assets, and Web3 companies, can rise or fall dramatically and quickly. If their value goes down, there’s no guarantee that it will rise again. As a result, there is a significant risk of loss of your entire principal investment. 

Digital assets are not generally backed or supported by any government or central bank and are not covered by FDIC or SIPC insurance. Accounts at digital asset custodians and exchanges are not protected by SPIC and are not FDIC insured. Furthermore, markets and exchanges for digital assets are not regulated with the same controls or customer protections available in traditional equity, option, futures, or foreign exchange investing. 

Digital assets include, but are not limited to, cryptocurrencies, tokens, NFTs, assets stored or created using blockchain technology, and other Web3 products. 

Web3 companies include but are not limited to, companies that involve the development, innovation, and/or utilization of blockchain, digital assets, or crypto technologies. 

This communication is for informational purposes only and does not constitute financial, tax, or legal advice, nor a recommendation to buy or sell any cryptocurrency or fund interest.

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