Galaxy Digital to Launch $100M Hedge Fund Linking Crypto Tokens and Financial Services Shares

Highlights:

• Galaxy Digital is set to launch a $100M hedge fund in early 2026 with limited crypto exposure.
• The fund splits capital between crypto tokens and financial services stocks tied to digital asset regulation.
• Regulatory clarity in the US and EU is drawing banks and institutions into crypto markets.

Galaxy Digital plans to launch a $100 million hedge fund in the first quarter of 2026, according to a Financial Times report. The fund will expand the firm’s institutional investment offerings during a period of heightened crypto market volatility. People familiar with the matter said the fund has already secured commitments from family offices and high-net-worth investors. A limited number of larger institutions have also participated. Additional commitments remain under discussion ahead of the launch window.

🚨 BREAKING:

Novogratz’s Galaxy Digital plans $100M hedge fund with crypto focus, launching Q1 2026! Secured $100M commitments, 30% in tokens, rest in fintech stocks—long/short strategy amid volatility. pic.twitter.com/YMgMlOoDM6

— Invest Alpha Pro (@JrSydrick) January 21, 2026

The hedge fund will operate within Galaxy Digital’s asset management division. The firm also plans to make a seed investment in the vehicle. However, Galaxy has not disclosed the size or structure of that contribution. The fund launch follows Galaxy’s continued expansion across trading, asset management, and advisory services. Founded by Mike Novogratz, the firm focuses on digital assets and crypto-linked financial services. Galaxy manages more than $17 billion in digital assets across its platforms.

The timing of the launch coincides with a general market pullback. Bitcoin is down more than 28% since it reached an all-time high in October 2025. Volatility in the market has diminished the exposure of certain investors. Galaxy, however, has continued developing new investment products during the downturn. Executives have positioned the hedge fund as a structured strategy rather than a directional crypto bet.

Galaxy Digital to Launch Fund with Crypto and Stock Exposure

The hedge fund will allocate up to 30% of its capital to crypto tokens. The remaining capital will target financial services stocks linked to digital asset technology and regulation. These comprise companies that deal with custody, payments, asset management, and blockchain infrastructure. The plan leverages both direct crypto exposure and conventional equity holdings related to the industry.

Fund managers will be seeking to identify firms that are likely to gain or lose with regulatory and technology changes. The approach does not depend on overall market direction. Instead, the fund allows positions during both rising and falling conditions. This structure supports active positioning during periods of price volatility.

The fund may gain exposure to Bitcoin, Ether, and Solana. Galaxy has not confirmed a final list of token allocations. Management has emphasized selective exposure rather than broad market tracking. The firm has stated that allocation decisions will depend on liquidity, market structure, and regulatory considerations.

Galaxy Digital already operates several crypto investment products that offer managed exposure without direct ownership. The firm also runs an index product tied to the Bloomberg Galaxy Crypto Index. In October, Galaxy expanded its U.S. retail presence through the GalaxyOne application. The app allows users to trade cryptocurrencies, access equities, and earn yields on digital and traditional assets.

GalaxyOne is here. Backed by @galaxyhq (Nasdaq: GLXY), GalaxyOne is built for individual investors who expect more:
✔️8% Premium Yield on cash (U.S.-accredited investors only)
✔️4% Annual Percentage Yield (“APY”) high-yield cash account
✔️Crypto + US equities trading… pic.twitter.com/nLEbwQOS6g

— GalaxyOne (@galaxyoneapp) October 6, 2025