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    <filerInfo>
      <registrantType>RMIC</registrantType>
      <liveTestFlag>LIVE</liveTestFlag>
      <filer>
        <issuerCredentials>
          <cik>0001815493</cik>
          <ccc>XXXXXXXX</ccc>
          <!--Field: Pseudo-Tag; ID: Name; Data:-->
        </issuerCredentials>
      </filer>
      <flags>
        <overrideInternetFlag>false</overrideInternetFlag>
        <confirmingCopyFlag>false</confirmingCopyFlag>
      </flags>
      <investmentCompanyType>N-1A</investmentCompanyType>
      <periodOfReport>06/30/2026</periodOfReport>
    </filerInfo>
    <seriesClass>
      <reportSeriesClass>
        <rptSeriesClassInfo>
          <seriesId>S000083352</seriesId>
          <!--Field: Pseudo-Tag; ID: Series Name; Data: VELA Short Duration Fund-->
          <classInfo>
            <classId>C000246925</classId>
            <!--Field: Pseudo-Tag; ID: Class Name; Data: VELA Short Duration Fund %2D Class A-->
          </classInfo>
          <classInfo>
            <classId>C000246926</classId>
            <!--Field: Pseudo-Tag; ID: Class Name; Data: VELA Short Duration Fund %2D Class I-->
          </classInfo>
        </rptSeriesClassInfo>
      </reportSeriesClass>
    </seriesClass>
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  <formData>
    <coverPage>
      <yearOrQuarter>YEAR</yearOrQuarter>
      <reportCalendarYear>2026</reportCalendarYear>
      <reportingPerson>
        <name>VELA Funds</name>
        <phoneNumber>614-653-8352</phoneNumber>
        <address>
          <com:street1>220 MARKET STREET</com:street1>
          <com:street2>SUITE 208</com:street2>
          <com:city>NEW ALBANY</com:city>
          <com:stateOrCountry>OH</com:stateOrCountry>
          <com:zipCode>43054</com:zipCode>
        </address>
      </reportingPerson>
      <agentForService>
        <name>The Corporation Trust Company</name>
        <address>
          <com:street1>1209 Orange Street</com:street1>
          <com:city>Wilmington</com:city>
          <com:stateOrCountry>DE</com:stateOrCountry>
          <com:zipCode>19801</com:zipCode>
        </address>
      </agentForService>
      <reportInfo>
        <reportType>FUND NOTICE REPORT</reportType>
      </reportInfo>
      <fileNumber>811-23585</fileNumber>
      <reportingSecFileNumber>333-239642</reportingSecFileNumber>
      <leiNumber>549300F0PMHX6GFZ7Q56</leiNumber>
      <explanatoryInformation>
        <explanatoryChoice>N</explanatoryChoice>
      </explanatoryInformation>
    </coverPage>
    <seriesPage>
      <seriesCount>1</seriesCount>
      <seriesDetails>
        <seriesReports>
          <idOfSeries>S000083352</idOfSeries>
          <nameOfSeries>VELA Short Duration Fund</nameOfSeries>
          <leiOfSeries>529900ZHE1W34UDO2Y57</leiOfSeries>
        </seriesReports>
      </seriesDetails>
    </seriesPage>
    <signaturePage>
      <reportingPerson>VELA Funds</reportingPerson>
      <txSignature>/s/ Jason Job</txSignature>
      <txPrintedSignature>/s/ Jason Job</txPrintedSignature>
      <txTitle>President</txTitle>
      <txAsOfDate>08/21/2026</txAsOfDate>
    </signaturePage>
  </formData>
</edgarSubmission>
