2 Virgina Pension Funds Get Into Crypto Lending Through VanEck New Finance Income Fund

On Tuesday, July 5, global investment manager VanEck announced that two pension systems in Fairfax County (which is in the state of Virginia, USA) have invested a portion of their funds in its loan fund. crypto.

VanEck, which was founded in 1955, has been “at the forefront of research and advocacy for this asset class since 2017, in terms of establishing a mature market structure as well as working working closely with global regulatory agencies to provide effective investment solutions to clients. .” MarketVector Indexes GmbH, which is one of its subsidiaries, was “the first regulated index provider to offer digital asset indices that meet industry benchmark standards.”

VanEck “operates a myriad of digital asset exchange-traded products listed in Europe, and in the United States, VanEck launched the first pure US ETF to invest in publicly traded companies involved in digital assets.” It also “offers exposure to bitcoin through a strategy that invests in bitcoin futures, as well as direct access to bitcoin to both accredited U.S. investors and qualified foreign investors.”

VanEck New Finance Income Fund, LP is “a convenient way to potentially generate income from the digital asset ecosystem without taking direct crypto price risk.” The fund aims to “provide attractive income to investors via short-term loan agreements with digital asset entities”. Here are its three main advantages:

  • Provides high yield income exposure to the fast growing crypto asset class.
  • Potentially lower volatility compared to direct exposure to digital assets.
  • Simplified approach that alleviates the operational burden of direct lending of digital assets.

Here is some additional information about the fund:

The Partnership’s investment objective is to provide attractive income generally through short-term loan agreements with borrowers in the digital asset industry. Borrowers from the digital asset industry include, but are not limited to, digital asset platforms, exchanges, and businesses. In seeking to achieve its investment objective, the Partnership will actively manage loan agreements by allocating loans to various borrowers in the digital asset industry based on the manager’s review of loan terms such as fixed term with respect to open term, expected yield, maturity and other factors. .

The Partnership will engage in the lending of legal tender (“fiat” currency), primarily US dollars, and the lending of digital assets that are pegged to and/or backed by, or algorithmically targeted to a currency ‘stablecoins’, such as the US dollar, and are designed to seek to have a stable value over time.

Here are the main specs:

In a press release issued yesterday, VanEck announced “the initial tranche of a $35 million commitment to the VanEck New Finance Income Fund, LP, by two retirement systems in Fairfax County, Virginia.” This investment from the Fairfax County Employees Retirement System and the Fairfax County Police Officers Retirement System “demonstrates growing institutional adoption of digital assets, as opportunities continue to mature.”

It should be noted that the VanEck New Finance Income Fund is only available to accredited investors in the United States.

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