The Fund’s investment objective is capital appreciation, which it generally seeks to achieve by investing in digital assets. The Fund utilizes a risk-based approach to digital asset allocation with the flexibility to adjust for adverse market conditions. The Fund will earn additional yield through staking solutions and digital asset lending, including through DeFi protocols. The Fund may also invest in securities issued by digital asset companies.
- Blockchain and web3 represent long-term disruptive forces within the broader economy, beyond just technology and finance.
- Traditional valuation methodologies can be employed to value digital assets projects, providing a framework for portfolio construction and risk management.
- Active process is thesis-driven, employing both long-biased token holdings and yield-generation.
Inception: June 2022
Management Fee: 2.00%
Performance Fee: 20% (subject to high watermark)
Min. Investment: $1,000,000
Additional Investment: $250,000
Investor Type: Qualified Purchasers
Redemptions: Quarterly (with 30 days notice)*
Gate: 2-Year Quarterly Rolling Investor-Level Gate; Fund-Level Gate; 5% redemption fee above gate
An investment in the Partnership involves a significant degree of risk, and, therefore, should be undertaken only by investors capable of evaluating the risks of the Partnership and bearing such risks. In addition, there are significant actual and potential conflicts of interests that may arise in connection with the Partnership that investors should be aware of. The existence of any risk or an actual conflict may have an adverse impact on the performance of the Partnership and, thus, the return to Limited Partners. Prospective investors in the Partnership should carefully consider the risk factors in connection with an investment in the Partnership and should consult their own legal, tax and financial advisors as to all of these risks and an investment in the Partnership generally. The Interests are suitable investments only for sophisticated investors for whom an investment in the Partnership does not constitute a complete investment program and who fully understand, and are willing to assume, and have the financial resources to withstand, the risks involved in the Partnership's specialized investment program and to bear the potential loss of their entire investment in the Interests. Please see important definitions and disclosures below.
The General Partner may suspend or limit the right of all Limited Partners to make withdrawals under certain circumstances as laid out in the Private Placement Memorandum.
Important Definitions & Disclosures
* Redemptions may be suspended under certain circumstances.
The VanEck Digital Assets Alpha Fund is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. The Fund is not a commodity pool for purposes of the Commodity Exchange Act. Before making an investment decision, you should carefully consider the risk factors and other information included in the Private Placement Memorandum.
The Fund is available to Qualified Purchasers Only. Please carefully read the Private Placement Memorandum before investing. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. The Fund has no operating history and involves a significant degree of risk. There is no guarantee the Fund will achieve its investment objective and investors may lose their entire investment. The Fund is not suitable for all investors. Past performance is not a guarantee of future results.
The Partnership's investment program is speculative and entails substantial risks. There can be no assurance that the Partnership's investment objective will be achieved.
An investment in the Fund is subject to risks which include, among others, regulatory, general investment and trading, opaque spot market, digital assets, digital asset exchanges, investing through DEXes, stablecoin, OTC transactions, valuation and liquidity, cryptocurrencies lending, digital asset lending and borrowing, DeFi lending of digital assets, digital asset lending programs offered by certain CeFi and DeFi exchanges, rebasing of digital assets, credit, credit market illiquidity, third party wallet providers, loss of private key, volatility and speculative nature of digital assets trading, digital asset network protocols and software, digital asset network malicious actors, forks and airdrops, digital asset miners ceasing operations, cybersecurity, computer malware and viruses, data loss, incorrect transfer of digital assets, initial coin/pre-sale initial coin offering, synthetic investments, options, futures, forwards, lack of blockchain company operating history, blockchain company failure, custody of fund assets, short selling, leverage, limited diversification, non-U.S. securities, and counterparty risks. Please note that this is not an exhaustive list of risks pertaining to the Fund. Please read carefully the PPM for a complete list of potential risks.
The information herein represents the opinion of the author(s), an employee of the advisor, but not necessarily those of VanEck. The securities/ financial instruments discussed in this material may not be appropriate for all investors. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security/financial instrument, or to participate in any trading strategy.
Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.
Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance.
Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.
The features, functions, characteristics, operation, use and other properties of the specific cryptocurrency may be complex, technical, or difficult to understand or evaluate. The cryptocurrency may be vulnerable to attacks on the security, integrity or operation, including attacks using computing power sufficient to overwhelm the normal operation of the cryptocurrency’s blockchain or other underlying technology. Some cryptocurrency transactions will be deemed to be made when recorded on a public ledger, which is not necessarily the date or time that a transaction may have been initiated.
- Investors must have the financial ability, sophistication and willingness to bear the risks of an investment and a potential total loss of their entire investment in cryptocurrency.
- An investment in cryptocurrency is not suitable or desirable for all investors.
- Cryptocurrency has limited operating history or performance.
- Fees and expenses associated with a cryptocurrency investment may be substantial.
The Partnership will be treated as a partnership for U.S. federal income tax purposes and not as an association or “publicly-traded partnership” taxable as a corporation. Each investor should consult before investing, with their advisors on the tax, accounting, and legal implications of investing based on your particular circumstances.
The General Partner and its principals may conduct any other business, including any business within the cryptocurrency or securities industry, whether or not such business is in competition with or adverse to the Partnership. Without limiting the generality of the foregoing, the General Partner and its principals (through an affiliated entity) may act as the investment adviser or investment manager for others, may manage funds or capital for others, may have, make and maintain investments in its own name or through other entities, and may serve as officer, director, consultant, partner or stockholder of one or more investment funds, partnerships, securities firms or advisory firms. Certain inherent conflicts of interest may arise from the fact that the General Partner, the principals of the General Partner and their affiliates may carry on substantial investment activities for other client accounts, including discretionary accounts and other investment vehicles.
There may be risks posed by the lack of regulation for cryptocurrencies and any future regulatory developments could affect the viability and expansion of the use of cryptocurrencies. Investors should conduct extensive research before investing in cryptocurrencies. Past performance is not a guarantee of future results.
Information provided by Van Eck is not intended to be, nor should it be construed as financial, tax or legal advice. It is not a recommendation to buy or sell an interest in cryptocurrencies.
VAN ECK ABSOLUTE RETURN ADVISERS CORPORATION (“VEARA”) IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. VEARA HAS ENGAGED OR MAY ENGAGE IN UNDERLYING OR SPOT VIRTUAL CURRENCY TRANSACTIONS IN A COMMODITY POOL. ALTHOUGH NFA HAS JURISDICTION OVER VEARA AND ITS COMMODITY POOL, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY FOR UNDERLYING OR SPOT MARKET VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS. YOU SHOULD ALSO BE AWARE THAT GIVEN CERTAIN MATERIAL CHARACTERISTICS OF THESE PRODUCTS, INCLUDING LACK OF A CENTRALIZED PRICING SOURCE AND THE OPAQUE NATURE OF THE VIRTUAL CURRENCY MARKET, THERE CURRENTLY IS NO SOUND OR ACCEPTABLE PRACTICE FOR NFA TO ADEQUATELY VERIFY THE OWNERSHIP AND CONTROL OF A VIRTUAL CURRENCY OR THE VALUATION ATTRIBUTED TO A VIRTUAL CURRENCY BY VEARA.