Virginia Fairfax County has begun investing part of its $35 million allocation into a cryptocurrency lending fund managed by global asset managers VanEck.
The company announced that it has received an initial tranche of investment commitment from Fairfax County, which is allocating funds from two retirement systems to a variety of crypto-focused investment methods.
Fairfax County has previously hinted at delving into the world of decentralized financial farming (DeFi) as part of its progressive stance toward the crypto space. The county began investing a small portion of the holdings from its employee retirement system and police officer retirement into various crypto companies and projects from 2018 onwards.
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As Fairfax continues to diversify its crypto investment strategy, its entry into the world of DeFi has officially begun with its investment in VanEck’s New Finance Income Fund. The fund offers short-term lending arrangements with crypto companies, platforms, and companies.
According to the VanEck website, the fund lends fiat and stablecoins to borrowers in the crypto space. Aimed at accredited investors, the fund offers high-income exposure to cryptocurrencies and requires an initial investment of $1 million. The investment manager is promoting a “simplified approach that eases the operational burden of direct digital asset lending.”
Fairfax County has slowly increased its funding in the space, allocating funds to seven crypto-focused allocations. One such provision is looking to take advantage of fluctuations in the field, as the hedge fund intends to take advantage of yield farming, underlying trading and exchange arbitrage opportunities.
The province previously released an update on its crypto and blockchain investments, in which Employee Retirement Systems and Police invested $10 million and $11 million, respectively, in Morgan Creek’s Blockchain Opportunities Fund.
The capital allocation from both funds is less than 1% of total assets under management — the county is slowly gauging the investment potential in the alternative asset class.