Galaxy Digital to Launch $100M Hedge Fund with Up to 30% Crypto Exposure

Source: Cryptonews Original Title: Galaxy Digital to launch $100M hedge fund with upto 30% crypto exposure Original Link:

Overview

Billionaire Mike Novogratz’s Galaxy Digital will launch a $100 million hedge fund that will invest in crypto tokens and financial services stocks. The fund is expected to launch in the first quarter of 2026, with up to 30% allocated towards crypto tokens and the remaining capital invested in financial services stocks.

Investment Strategy

The hedge fund will invest up to 30% of its capital into various cryptocurrency tokens and the remainder across financial services stocks that it believes are likely to be impacted by shifts in digital asset technologies and regulation.

According to Joe Armao, head of the fund, Galaxy Digital remains optimistic on Bitcoin and other major cryptocurrencies such as ETH and Solana, despite Bitcoin’s recent 28% decline from its all-time high reached in October 2025. Armao stated the hedge fund hopes to profit from identifying “winning and losing companies,” though specific crypto tokens for investment were not disclosed.

Funding and Support

Galaxy Digital will make a seed investment in the fund, though the exact size was not disclosed. The fund has already secured investments from a mix of family offices, high-net-worth investors, and some larger institutions, with more commitments expected before launch.

About Galaxy Digital

Founded in 2018 by U.S. billionaire Mike Novogratz, Galaxy Digital is a financial services firm focused on the digital asset sector with over $17 billion worth of digital assets under management. The company has backed several high-profile crypto startups such as Polygon and Fireblocks through its venture capital arm.

Last year, Galaxy Ventures Fund I LP announced it had raised close to $175 million to $180 million to invest in early-stage companies building infrastructure and financial tools for the crypto economy. In October, Galaxy Digital expanded its U.S. offerings with the launch of GalaxyOne, a financial application that lets U.S. investors trade cryptocurrencies, access equities, and earn yields on digital and traditional assets.