Galaxy Digital, the crypto-focused financial firm led by Mike Novogratz, plans to launch a $100 million hedge fund in the first quarter of 2026, aiming to provide investors with a mix of cryptocurrency and traditional financial services exposure, according to the Financial Times. The fund has reportedly secured commitments from family offices, high-net-worth individuals, and select institutional investors, while Galaxy itself will make a seed investment.
The fund’s strategy will allocate up to 30% of capital to cryptocurrencies, including major tokens such as Bitcoin, while the remaining 70% will target equities in the financial services sector. These equities will include banks, payment companies, and asset managers positioned to benefit from developments in digital assets.
A Hybrid Approach to Crypto Investment
Galaxy’s fund will take both long and short positions, allowing it to generate returns from markets that rise or fall, rather than relying solely on upward price movements. This structure differs from many traditional crypto-focused funds, which typically concentrate almost entirely on token appreciation. By combining crypto exposure with equities, Galaxy aims to balance growth opportunities with risk management in a market that has experienced heightened volatility in recent months.
Mike Novogratz said the fund reflects investor demand for structured crypto exposure that goes beyond direct token investment. “Our goal is to offer a hybrid product that captures the upside of crypto while mitigating risk through selective exposure to related financial services,” he said in a recent statement.
Galaxy Digital currently manages approximately $17 billion in digital assets and has reported strong profits across its trading and asset management units, underscoring its position as a major player in crypto finance.
The fund is expected to be fully operational in the first quarter of 2026, adding a hybrid investment vehicle to Galaxy’s growing suite of products. Analysts see it as a signal that institutional investors are increasingly seeking diversified crypto strategies that combine digital assets with traditional financial instruments.
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