Galaxy Digital, the crypto-focused investment firm founded by billionaire Mike Novogratz, is preparing to launch a new $100 million hedge fund that will blend exposure to cryptocurrency tokens with traditional financial services equities.
According to a Jan. 21 report by the Financial Times, the hedge fund is expected to go live sometime in the first quarter of 2026, though an exact launch date has not yet been disclosed.
Under the fund’s strategy, up to 30% of capital will be allocated to crypto tokens, while the remaining portion will be invested in financial services stocks that Galaxy believes stand to benefit from the continued evolution of digital assets and regulatory frameworks.
Galaxy remains bullish despite market pullback
The launch comes at a time when the crypto market has been under pressure. Bitcoin has fallen more than 28% from its October 2025 all-time high, prompting caution among some institutional investors. Despite this pullback, Galaxy Digital remains confident in the long-term outlook for Bitcoin and other major digital assets.
Joe Armao, who will lead the new hedge fund, said the strategy aims to capitalize on market dislocations by identifying both “winning and losing companies” across crypto and financial services. While Armao did not specify which tokens the fund plans to invest in, he confirmed that exposure will span multiple areas of the digital asset ecosystem.
Galaxy Digital is expected to make a seed investment into the hedge fund, although details regarding the size or structure of that allocation were not disclosed. Sources cited by the Financial Times said the fund has already attracted commitments from family offices, high-net-worth individuals, and select institutional investors, with additional capital expected ahead of the official launch.
Expanding Galaxy Digital’s investment footprint
Founded in 2018, Galaxy Digital has grown into one of the most prominent financial services firms focused on the digital asset sector, managing more than $17 billion in assets. Through its venture capital arm, the company has backed several high-profile crypto startups, including Polygon and Fireblocks.
Last year, Galaxy’s venture arm announced that Galaxy Ventures Fund I LP had raised between $175 million and $180 million to invest in early-stage companies building infrastructure and financial tools for the crypto economy.
In October, the firm also expanded its U.S. presence with the launch of GalaxyOne, a financial application that allows U.S. investors to trade cryptocurrencies, access equities, and earn yields on both digital and traditional assets.
The upcoming hedge fund underscores Galaxy Digital’s continued commitment to crypto markets, even as volatility and regulatory uncertainty persist.
