Fairfax County Employees' Retirement System Invests in VanEck's New Finance Income Fund

VanEck's New Finance Income Fund is the name of a hedge fund operated by VanEck. The Fairfax County Employees' Retirement System, as well as the Fairfax County Police Officers Retirement System, invested $35 million into it.

The investment fund of the Police Department in Fairfax County, Virginia, has invested $35 million into VanEck's cryptocurrency lending fund. The administrative region has experience in the digital asset industry since its pension fund started investing in blockchain technology years ago and later showed intentions to add crypto investment managers.

VanEck's Lending Fund Grew, Thanks to New Investors

VanEck’s New Finance Income Fund aims to offer “attractive income to investors via short-term lending arrangements with digital asset entities.” The company claims that its feature offers high-yield exposure to cryptocurrencies and a simple way of investing in the asset class.

Three years ago, Virginia’s Police Department invested a portion of its pension fund in bitcoin and blockchain technology. Despite the volatility in the sector, Director Jeff Weiler said that all investments hide some risks, concluding that dealing with crypto could bring significant earnings:

“However, as they would do with any investment, Fairfax’s investment team determined that the expected returns from this investment were in line with the level of risk incurred. This also played a big part in how much was invested.”

Earlier this year, the Fairfax County Police Department’s pension fund doubled down on its efforts by hiring cryptocurrency investment managers.

VanEck, the company behind the VanEck/SolidX Bitcoin ETF proposal, has been trying to get approval for its fund since 2018.

VanEck, the US-based crypto firm that has been trying to launch a Bitcoin exchange-traded fund (ETF) since March 2018, is worth mentioning.

Over the years, the global investment manager has sought the SEC's approval multiple times. However, each time, the regulator rejected those filings citing investor protection or other obstacles.

VanEck, at the beginning of this month, submitted another application to the agency, saying:

“The only consistent outcome would be approving spot Bitcoin ETPs on the basis that the Bitcoin futures market is also a regulated market of significant size as it relates to the Bitcoin spot market.”

The Securities and Exchange Commission, which recently rejected Grayscale's application to launch a Bitcoin ETF in the U.S., has until March 2023 to decide whether VanEck's product could operate on American soil.