Through the asset manager, Fairfax County continues to investigate the realm of yield farming through the VanEck crypto lending fund.
Fairfax County in Virginia has started contributing some of a $35 million allocation to a cryptocurrency loan fund run by international asset managers VanEck.
The company disclosed that Fairfax County, which is investing money from two retirement systems into a number of cryptocurrency-focused investment channels, had given it an early tranche of its investment commitment.
As part of its progressive approach to the cryptocurrency realm, Fairfax County had previously made hints that it would explore the field of Decentralized Finance (DeFi) yield farming. From 2018 onward, the county started contributing a limited amount of assets from its Police Officers Retirement and Employees’ Retirement Systems to various bitcoin businesses and enterprises.
With its investment in VanEck’s New Finance Income Fund, Fairfax has formally entered the realm of DeFi as it continues to diversify its cryptocurrency investment strategy. The fund offers agreements for short-term lending with bitcoin firms, platforms, and businesses.
The fund lends fiat money and stablecoins to borrowers in the cryptocurrency industry, according to the VanEck website. The fund seeks out accredited investors and demands a $1 million initial deposit. It offers high-yield income exposure to cryptocurrencies. “A streamlined approach that lessens the operational complexity of direct digital assets lending,” the investment manager claims.
Fairfax County has gradually boosted its investment in the field by allocating money to seven cryptocurrency-related projects. One of these allocations includes a hedge fund that plans to use yield farming, basis trading, and exchange arbitrage opportunities to capitalize on market volatility.
The Employees’ and Police Retirement Systems each contributed $10 million and $11 million to Morgan Creek’s Blockchain Opportunities Fund, according to a previous update from the County on its bitcoin and blockchain investments.
As the county gradually assesses the investment possibilities in the alternative asset class, the capital allocation from both funds is less than 1% of their total assets under management.
