VanEck is launching its PurposeBuilt Fund that will invest in Avalanche [AVAX] blockchain projects

The fund will invest in companies building on the Avalanche [AVAX] blockchain and developing tokens designed to deliver sustainable value and practical utility.

In June 2025, VanEck will be launching its PurposeBuilt Fund, which will invest in companies building on the Avalanche [AVAX] blockchain and developing tokens designed to deliver sustainable value and practical utility.

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.

To ensure capital efficiency, the PurposeBuilt Fund will allocate idle assets into Avalanche-native real-world asset (RWA) products, such as tokenized money market funds. This approach preserves liquidity while actively reinforcing the broader onchain ecosystem.

The same team that manages VanEck’s Digital Assets Alpha Fund (DAAF) will be managing the fund. According to Pranav Kanade, portfolio manager for DAAF,

“The next wave of value in crypto will come from real businesses, not more infrastructure,”

The team aims to solve a major challenge in the crypto space by helping credible blockchain projects rise above the noise of short-term speculation.

John Nahas, Chief Business Officer at Ava Labs, viewed the fund as a significant development for Avalanche, highlighting its role in attracting founders who are committed to building protocols with real utility and long-term token value.

“VanEck PurposeBuilt Fund aims to bring the kind of long-term capital and strategic conviction that builders need to shift that focus.”

He added,

“This fund reinforces the strength of Avalanche as the home for serious founders who are scaling real businesses and driving meaningful onchain adoption.”

Impact on AVAX’s price

This led to Avalanche’s native token, AVAX, trading at around $24.29 at press time, notating a 7.45% daily gain and a 44% rise over the year.

It’s worth mentioning that, besides launching its PurposeBuilt Fund, VanEck has now filed with the U.S. SEC to introduce the first spot Binance [BNB] ETF, highlighting growing institutional interest in altcoins.

If approved, the ETF would provide U.S. investors with a regulated avenue to gain direct exposure to Binance Coin, further contributing to the momentum behind over 70 active altcoin ETF applications currently in development.