How VanEck Plans to Support Fintech and Crypto Startups with New $30 Million Fund

The ETF issuer and investment management firm VanEck recently announced plans to explore further opportunities in the venture capital market. Back in 2021, the company introduced a Bitcoin futures exchange-traded fund (ETF), and two years later, in October, they launched an Ethereum version of that product. However, regulatory challenges, including the SEC’s shortlisting of approved ETH and BTC holders, forced VanEck to close down its funds.

Although VanEck was among the earliest firms to introduce spot Bitcoin and Ethereum ETFs, it had to reconsider its position after the SEC’s actions. Recently, VanEck shifted its focus and announced that venture capital would be its new direction. With approximately $108 billion in assets under management, VanEck’s $30 million investment into this venture fund is seen as a cautious yet ambitious move. The fund is expected to target clients in the fintech, AI startup, and cryptocurrency industries.

VanEck also revealed who would lead the new venture capital fund: Wyatt Lonergan and Juan Lopez, the former team lead of Circle’s venture department. Their extensive experience in venture operations is expected to provide the project with a strong foundation.

The fund aims to support 25 to 30 projects, with each project receiving between $500,000 and $1 million. VanEck has stated that projects offering financial and strategic upside will be prioritized. As of now, four projects have already received funding from the initiative.

Jan van Eck, the Chief Executive Officer of VanEck, expressed the company’s goal of being a support system for founders of disruptive fintech companies, whom he believes will help shape the future of finance. He also noted a preference for projects operating at the application layer with infrastructure-agnostic systems built on stablecoins.