Crypto: Galaxy To Launch $100m Hedge Fund To Bet On Rising, Falling Crypto...

Galaxy plans to deploy a new hedge fund strategy that targets both crypto tokens and traditional financial stocks as the “up-only” phase fades.

Mike Novogratz’s digital asset company Galaxy is preparing to launch a $100 million hedge fund aimed at profiting from both rising and falling crypto prices.

The fund is set to launch in the first quarter and will be structured to take long and short positions across digital assets and traditional equities tied to financial infrastructure, the Financial Times reported on Wednesday.

Up to 30% of the fund’s capital will be allocated directly to crypto tokens, with the remainder deployed into financial services stocks expected to be influenced by digital asset regulation, blockchain adoption and technological change, per the report.

The fund has already secured $100 million in commitments from family offices, high-net-worth individuals and select institutional investors, though the company may open the strategy with additional capital. Galaxy confirmed to the FT that it will make a seed investment, but declined to disclose the amount.

Related: Wealth transfer may boost crypto adoption among younger investors: Galaxy exec

Joe Armao, who will lead the new fund, said the market is entering a different phase. “The ‘up only’ part of this cycle is potentially coming to an end,” he told the outlet, while maintaining a positive outlook on major assets including Ethereum (ETH) and Solana (SOL). Armao added that Bitcoin (BTC) remains relevant in an environment shaped by potential US Federal Reserve rate cuts, provided equities and gold remain resilient.

Beyond crypto-native firms, Galaxy is also watching traditional players. Armao cited sell-offs in payments and data companies such as Fiserv, arguing that shifting regulation, blockchain adoption and advances in artificial intelligence are changing valuations across financial services.

The move follows a recent pullback in the cryptocurrency market. Bitcoin has fallen about 30% from its October peak and is trading near $90,000.

In September, Galaxy bought around $306 million worth of Solana, extending a buying spree totaling more than $1.5 billion.

Source: CoinTelegraph