It was announced today by VanEck that two retirement systems in Fairfax County, Virginia have committed $35 million to the VanEck New Finance Income Fund, LP, as the initial tranche of the investment.
There is growing institutional adoption of digital assets as they continue to mature, as can be seen from the investment by the Fairfax County Employees’ Retirement System as well as the Fairfax County Police Officers Retirement System.
Opportunities in Digital Assets
The VanEck New Finance Income Fund, LP was launched in December 2021, and it is available only to accredited investors who can apply. By establishing short-term lending arrangements with digital asset entities, the fund seeks to provide investors with income opportunities through a simplified approach that reduces the operational burdens of direct lending to digital asset entities through short-term lending arrangements designed to generate income for investors. As a result, direct exposure to digital assets may also result in lower volatility than direct exposure to physical assets.
As a company, VanEck has a history of looking beyond financial markets to identify trends that may create opportunities for investors that make sense beyond the current economic environment.
Currently, VanEck provides both active and passive strategies that provide compelling exposures. VanEck is an investment management firm that manages an estimated $78.3 billion in assets as of May 31, 2022. These assets include mutual funds, ETFs, and institutional accounts. There are various capabilities that the firm has available to enhance portfolio diversification, ranging from core investment opportunities to more specialized exposures.
According to the VanEck statement, there are a number of important disclosures regarding the risks associated with cryptocurrencies and investing in them. VanEck New Finance Income Fund, LP is not a registered investment company under the Investment Company Act of 1940, which means it is not subject to the same regulatory requirements as mutual funds or ETFs that are registered under that same Act, which means its performance will be different from those of mutual funds and ETFs that are registered under the Act.
In terms of the Commodity Exchange Act, the Fund is not considered to be a commodity pool. In order to make an informed investment decision, you should carefully review the Private Placement Memorandum and any other information included in it before making any decisions. In addition to being speculative and entailing substantial risks, the Partnership’s investment program is a highly volatile one. Despite the Partnership’s best efforts, there can be no guarantee that the Partnership’s investment objective will be met.