VanEck’s PurposeBuilt Fund: A Potential Catalyst for Real-World Adoption of Avalanche (AVAX) and Altcoin Growth

Is VanEck’s PurposeBuilt Fund the missing piece in crypto’s journey from speculation to real-world adoption?

• VanEck launches PurposeBuilt Fund to back Avalanche-based projects with real-world utility.

• VanEck files for first U.S. spot BNB ETF amid rising altcoin investment demand.

VanEck is preparing to expand its footprint in the digital asset space by launching its PurposeBuilt Fund in June 2025. The fund will invest in companies building on the Avalanche [AVAX] blockchain and developing tokens designed to deliver sustainable value and practical utility.

According to the press release,

“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.”

Will PurposeBuilt Fund Act as a Catalyst?

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 on-chain ecosystem.

The same team that manages VanEck’s Digital Assets Alpha Fund (DAAF) will steer 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.”

That being said, 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, hailed the fund as a milestone for Avalanche, emphasizing its potential to attract dedicated founders who focus on 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 lead that shift,” he stated.

He continued, “This fund reinforces the strength of Avalanche as the home for serious founders who are scaling real businesses and driving meaningful on-chain adoption.”

Avalanche also appreciated this, as it noted,

Source: Avalanche/X

Impact on AVAX’s Price

This led to Avalanche’s native token, AVAX, trading around $24.29 at press time, marking a 7.45% daily gain and a 44% rise over the year. It’s worth noting that, besides launching its PurposeBuilt Fund, VanEck has now filed with the U.S. SEC to introduce the first spot Binance [BNB] ETF, signaling growing institutional interest in altcoins.

If approved, the ETF would offer U.S. investors a regulated pathway to gain direct exposure to Binance Coin, adding to the momentum behind over 70 active altcoin ETF applications currently in play.

Conclusion

VanEck’s PurposeBuilt Fund could be a pivotal development for the crypto landscape, offering a much-needed bridge between speculation and genuine utility. By focusing on projects that demonstrate real-world value, the fund may significantly contribute to the long-term sustainability of the Avalanche ecosystem and the broader digital asset market.