Fairfax, a county in Virginia, has started investing a part of its allotment of up to $35M into a VanEck-based global asset managers’ fund for lending crypto. The company declared that the earliest tranche of Fairfax County’s (which endeavors to specify funds coming from a couple of retirement systems into diverse avenues based on crypto) investment commitment has been received by it.
Previously, Fairfax County had indicated exploring the yield farming sector of decentralized finance (DeFi) as included in the progressive attitude thereof toward the field of cryptocurrency. The country initiated investing a short part of its holdings from the Police Officers Retirement as well as the Employees’ Retirement System into diverse crypto ventures and venues in 2018 and so on.
As Fairfax keeps on diversifying the crypt investment plan, its entree into the DeFi world has formally started with the investment in the New Finance Income Fund of VanEck. The lending arrangements of short-term are offered by the fund with crypto firms, businesses, and venues. as per the web portal of VanEck, the stablecoins and fiat currency are used by the fund to lend to borrowers within the crypto world.
Focusing on accredited investors, the goal of the fund is to deliver high-yield income exposure in the case of the crypto and to demand $1M as an initial investment. A simplified approach is touted by the investment manager to lessen the operations pressure of direct lending in digital assets. A gradual increase has been witnessed by Fairfax County in its financing focused on the respective space, allocating funds for 7 crypto-related allocations.
One among respective allocations is centered around gaining benefits from the volatility prevailed throughout the digital asset world while having a hedge fund that intends to be benefitted from yield farming, exchange arbitrage, as well as basis trading opportunities. Formerly, the County released an update on the investments thereof related to the blockchain and crypto space, with the Police Retirement Systems and Employees investing up to $11M and $10M respectively into the Blockchain Opportunities Fund of Morgan Creek.
Both the funds provide a capital allotment of nearly less than even 1% of the cumulative assets thereof under management, as great attention is being paid by the county to the investment potential in the substitutive asset class and it is gradually evaluating this.