Galaxy, the crypto firm founded by billionaire investor Mike Novogratz, is launching a new $100 million hedge fund focused on digital assets and related stocks.
The plan was reported by the Financial Times. Galaxy said the fund will launch in the first quarter of this year, as crypto markets adjust after a recent sell-off.
The new fund will be able to bet on both rising and falling prices. This gives it more flexibility than long-only crypto products.
LATEST: 💰 Galaxy Digital is launching a $100 million hedge fund to capitalize on rising and falling crypto prices, allocating up to 30% in digital assets and the rest in financial stocks, according to the Financial Times. pic.twitter.com/cfQV0MrgwS
— CoinMarketCap (@CoinMarketCap) January 21, 2026
How the Fund Will Invest
Galaxy oversees about $17 billion in digital assets today. The hedge fund will take a mixed approach.
Up to 30% of the fund will be invested directly in crypto tokens. The rest will go into financial services stocks that Galaxy believes are affected by crypto technology, regulation, and market shifts.
The fund has already raised $100 million from family offices, wealthy individuals, and some larger institutions. People familiar with the matter said more commitments could still come in before launch.
Galaxy is also making a seed investment in the fund, but did not disclose the amount.
Launching During a Market Pullback
The launch comes during a softer period for crypto prices. Bitcoin has fallen about 28% from its peak in October and is trading near $90,000.
Bitcoin is also down around 5% this week. The move followed renewed global trade tensions after former US president Donald Trump threatened tariffs tied to Greenland-related disputes.
Institutional credit is moving onchain.
Galaxy has closed the initial issuance of its debut tokenized CLO at $75M, establishing a new model for institutional participation in private credit.
The transaction was anchored by an approximately $50M allocation from @grovedotfinance.
— Galaxy (@galaxyhq) January 15, 2026
Joe Armao, who will lead the fund, said the market may be leaving its easy growth phase. Still, he remains positive on major assets like Bitcoin, Ether, and Solana.
He said Bitcoin remains important in a world where interest rates may fall, and traditional markets remain stable.
Galaxy’s Broader Strategy
Novogratz founded Galaxy nine years ago. The firm runs crypto investment banking and asset management businesses.
Galaxy was once planned as a hedge fund only. Novogratz later shifted the strategy, citing market conditions at the time. The firm reported $505 million in profit in the third quarter of 2025.
Armao said the new fund will focus on both winners and losers. This includes crypto firms, banks, payment companies, and software groups facing disruption from blockchain and artificial intelligence.
Why This Matters
Galaxy’s move shows that large investors still see opportunity in crypto, even during pullbacks.
A hedge fund that can trade both directions may attract investors seeking exposure with tighter risk control.
Disclaimer
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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