Galaxy Eyes $100M Hedge Fund Launch Amid Crypto Market Pullback
Galaxy, the digital assets outfit headed by Mike Novogratz, is getting ready to roll out a $100 million hedge fund to capitalise...
Quick overview
- Galaxy, led by Mike Novogratz, is launching a $100 million hedge fund to leverage volatility in cryptocurrencies and financial services.
- The fund employs a long-short strategy, allocating 30% to crypto tokens and 70% to financial services and tech shares.
- Galaxy's approach aims to balance growth and risk management, focusing on companies sensitive to regulations and blockchain developments.
- Despite recent market fluctuations, Galaxy is confident that current conditions present a favorable opportunity for investment.
Galaxy, the digital assets outfit headed by Mike Novogratz, is getting ready to roll out a $100 million hedge fund to capitalise on any volatility that may come our way across cryptocurrencies and shares in financial services. They’re going at this with a long-short strategy, which enables them to make a profit out of both rising and falling markets – that’s the gist of it, according to the Financial Times.
This vehicle has got some serious backing from family offices, high-net-worth individuals and institutional investors, which says a lot about the ongoing appetite for structured exposure to digital assets despite all the recent market wobbles.
How the fund is divvying up its risk across markets
The way the fund is put together is all about striking a balance between growth and risk management. They’re allocating around 30% of the capital to crypto tokens, while the other 70% is looking at financial services and tech-related shares that are directly affected by regulations, blockchain uptake and all the digital asset infrastructure that comes with it.
That kind of split lets Galaxy get a decent chunk of crypto exposure without relying on the price of individual tokens to go up. By pairing digital assets up with shares in companies that do trading, custody, and fintech, the overall strategy is broadening where the returns come from beyond just crypto prices moving up and down.
🚨 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
Some of the key bits to this strategy are:
- Long-short positioning across crypto and shares
- Crypto exposure is capped at 30%
- They’re focusing on financial companies that are sensitive to regulations
- Volatility is the name of the game, not making directional bets
Why Galaxy is diving in now
The timing of all this is actually because Galaxy is feeling pretty confident – not cautious. Even though Bitcoin has taken a bit of a tumble and is now hovering around the $87,900- $89,500 mark, the team still thinks corrections in the market are a great time to get in. They point to the ongoing evolution in regulation, AI being integrated into more stuff and more institutions getting on board as long-term drivers.
The launch of this fund is just the next step in Galaxy’s overall positioning in digital assets, which includes strategy equity stakes and treasury exposure to blockchain ecosystems. For investors, this strategy offers a solid way to engage with crypto volatility while still having some balance provided by the traditional market instruments.
In the end, Galaxy’s new fund shows us that institutional players are evolving beyond just being in crypto to a whole new way of doing things, a multi-asset volatility focused strategy designed to navigate uncertain markets.
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