Galaxy Digital to Launch $100M Hedge Fund With Up to 30% in Crypto
Galaxy Digital, the digital asset financial services firm led by billionaire , is preparing to launch a $100 million hedge fund in the first quarter of 2026, marking a strategic expansion as volatility returns to cryptocurrency markets.
The new investment vehicle will deploy a long-short strategy across digital assets and traditional financial services companies.
According to , the fund has already secured its initial $100 million commitment from family offices, high-net-worth individuals, and institutional investors, with Galaxy Digital providing a viewd investment.
The fund’s allocation strategy reflects a measured approach to crypto exposure. Up to 30% of assets will be invested directly in cryptocurrency tokens, including , ETH, and Solana.
The remaining 70% will target publicly traded financial services companies that Galaxy believes will be affected by shifts in digital asset regulation and blockchain technology adoption.
This balanced structure aims to provide crypto market exposure while diversifying risk through equities in platforms, mining operations, custody providers, and fintech firms with digital asset connections.
The approach represents an effort to attract institutional capital viewking managed exposure without the operational complexity of holding tokens directly.
Strategic Timing Amid Market Turbulence
The fund launch comes as BTC trades around $90,000, having fallen approximately 4% over the past week from its recent highs.
Joe Armao, who will head the new fund, acknowledged the changing market environment, indicating that the aggressive growth phase of the current crypto cycle may be losing steam.
However, he maintains a bullish outlook on major digital assets over the long term, particularly in the context of potential Federal Reserve interest rate cuts.
The timing reflects broader institutional reassessment of crypto’s role in investment portfolios. Asset managers are increasingly viewking regulated vehicles that offer digital asset exposure through familiar frameworks.
Galaxy’s hybrid approach addresses this demand while operating within established regulatory structures.
Founded in 2017, Galaxy Digital has expanded into a major player with approximately $17 billion in assets under management, providing services including trading, lending, asset management, and venture investments.
The new hedge fund adds another dimension to the firm’s institutional offerings as cryptocurrency markets mature beyond simple directional bets.
The fund will employ active position management across both long and short trades, targeting opportunities in companies affected by regulatory changes and adoption.
Galaxy executives remain confident in digital assets’ long-term trajectory while acknowledging that the path forward will likely involve greater complexity and dispersion rather than the broad rallies that characterized earlier market phases.
