Fairfax County, Virginia has begun investing a portion of a $35 million allocation in a crypto lending fund run by asset manager VanEck.
The company announced that it had received an initial tranche of investment allocation from Fairfax County, which is directing funds from two retirement systems into a variety of cryptocurrency-focused investment methods.
Fairfax County had previously hinted that it planned to venture into the world of DeFi yield farming. as part of his stance in favor of the cryptocurrency space. the county began to invest a small part of the holdings from the retirement system of its employees and the retirement of police officers in various cryptocurrency companies and ventures as of 2018.
As Fairfax continues to diversify its cryptocurrency investment strategy, its foray into the world of DeFi has officially begun with its investment in VanEck’s New Finance Income Fund. The fund offers short-term loan agreements with companies, platforms and businesses that handle cryptocurrencies.
According to VanEck’s website, the fund lends currency and stablecoins to borrowers in the crypto space. Aimed at accredited investors, the fund offers high-yield exposure to cryptocurrencies and requires an initial investment of $1 million. The investment manager touts “a streamlined approach that eases the operational burden of direct digital asset lending.”
Fairfax County has slowly increased its funding in the space, committing funds to seven crypto-focused allocations. One of these allocations is looking to profit from the volatility in the space, with a hedge fund looking to take advantage of yield farming, base trading and arbitrage opportunities.
The county previously released an update on its investments in the cryptocurrency and blockchain space, with employee and police retirement systems by investing $10 million and $11 million, respectively, in Morgan Creek’s Blockchain Opportunities Fund.
Both funds’ capital allocation is less than 1% of their total assets under management, as the county slowly gauges investment potential in this alternative asset class.
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