TLDR
- Galaxy Digital closes $100 million in funding for cryptocurrency hedge fund launching first quarter 2026
- Fund splits investments 30% in digital currencies, 70% in blockchain and AI-impacted financial services firms
- Strategy allows both long and short positions to profit from market movements in either direction
- Mike Novogratz’s firm manages $17 billion in digital assets and earned $505 million in Q3 2025
- Commitments come from family offices, wealthy individuals, and institutional investment groups
Galaxy Digital has completed fundraising for a $100 million cryptocurrency hedge fund scheduled to begin operations in the first quarter of 2026. The firm founded by billionaire Mike Novogratz received commitments from family offices, high-net-worth individuals, and institutional investors.
The launch marks a strategic shift for Galaxy Digital. The company originally started as a hedge fund concept nine years ago before transitioning to asset management and investment banking services.
Galaxy Digital oversees approximately $17 billion in digital assets. The firm became publicly traded on August 1, 2018, establishing itself as an early publicly listed crypto investment company in America.
Investment Approach Combines Crypto Assets and Financial Services
The hedge fund will place up to 30% of capital into direct cryptocurrency purchases. The other 70% targets financial services businesses influenced by blockchain technology, artificial intelligence developments, and regulatory changes.
Joe Armao leads the fund’s management team. He said the investment approach focuses on finding both outperforming and underperforming companies across digital finance markets.
The fund uses long and short positions throughout its portfolio. This structure enables profits from both rising and falling asset prices.
Armao stated Bitcoin and leading cryptocurrencies including Ether and Solana present strong long-term opportunities. Federal Reserve interest rate policy could provide support for these digital assets.
Launch Timing During Market Volatility
Galaxy Digital launches the fund as Bitcoin trades around $90,000 after declining approximately 28% from October highs. Digital currency markets have shown increased price swings in early 2026.
The firm demonstrated solid financial results despite market challenges. Galaxy Digital generated $505 million in profits during the third quarter of 2025.
Shares of Galaxy Digital closed at $31.72, declining 1.19% in recent trading. The company indicated it may accept further commitments above the initial $100 million raised.
People with knowledge of the fundraising confirmed the investment total to the Financial Times. Galaxy Digital has not stated whether the fund reached maximum capacity or continues accepting new investors.
The hedge fund model contrasts with standard crypto investment products focused exclusively on price gains. Through short positions and exposure to traditional finance companies, the fund can produce returns across different market conditions.
The fund diversifies beyond pure cryptocurrency holdings into companies affected by blockchain innovation. This broader mandate provides multiple paths to generate investment returns.
Galaxy Digital stock trades on the Nasdaq exchange under ticker symbol GLXY. The firm maintains offices serving clients across North America and international markets.
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