Virginia county Fairfax has started investing some of the $35 million allotment right into a cryptocurrency lending fund managed by global asset managers VanEck.
The firm announced it had received a preliminary tranche from the investment commitment from Fairfax County, that is allocating funds from two retirement software in a number of cryptocurrency-focused investment avenues.
Fairfax County had formerly hinted at delving into the field of decentralized finance (DeFi) yield farming included in its progressive attitude toward the cryptocurrency space. The county started investing a little part of holdings from the employees’ retirement system and also the police officers’ retirement into various cryptocurrency companies and ventures from 2018 onwards.
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As Fairfax is constantly on the diversify its cryptocurrency investment strategy, its foray into the field of DeFi has formally begun using its purchase of VanEck’s New Finance Earnings Fund. The fund offers short-term lending plans with cryptocurrency companies, platforms and companies.
According towards the VanEck website, the fund lends out fiat currency and stablecoins to borrowers within the cryptocurrency space. Targeting accredited investors, the fund offers high-yield earnings contact with cryptocurrencies and needs a $a million energy production. An investment manager touts “a simplified approach that alleviates the operational burden of direct digital assets lending.”
Fairfax County has gradually elevated its financing in to the space, committing funds to seven cryptocurrency-focused allocations. One of these simple allocations looks to learn from volatility within the space, having a hedge fund planning to leverage yield farming, basis buying and selling and exchange arbitrage possibilities.
The County formerly issued an update on its investments in to the cryptocurrency and blockchain space, using the employees’ and police retirement systems investing $ten million and $11 million, correspondingly, into Morgan Creek’s Blockchain Possibilities Fund.
The main city allotment from both funds is under 1% of the total assets under management — because the county gradually gauges an investment potential within the alternative asset class.
