Quick Breakdown
- Galaxy Digital has secured $100 million in commitments from family offices and institutional investors to launch a new crypto hedge fund in Q1 2026.
- The fund utilizes a hybrid long-short strategy, allocating 30% to liquid tokens like Bitcoin and 70% to financial services stocks.
- This move follows Galaxy’s reporting of $505 million in net income for Q3 2025, signalling a shift toward diversified, operationally driven investment vehicles.
According to reports, Mike Novogratz’s Galaxy Digital has raised $100 million to launch a new crypto-focused hedge fund scheduled for the first quarter of 2026. The fund, which targets high-net-worth individuals and institutional clients, will employ a long-short strategy to trade volatility across both digital assets and traditional equities. This launch marks a strategic expansion for Galaxy, which managed approximately $17 billion in digital assets as of late 2025.
💥 BREAKING:
Galaxy Digital is planning for a $100 million hedge fund designed to profit from digital assets and fintech sector turbulence.
Tons of fresh liquidity is pouring into RWAs 🔥 pic.twitter.com/3aqR3B2yiF
— Real World Asset Watchlist (@RWAwatchlist_) January 21, 2026
Strategic allocation and market timing
The new vehicle intends to profit from both rising and falling markets by taking positions in a combined universe of tokens and stocks. According to sources familiar with the matter, the fund will allocate up to 30% of its capital directly into liquid cryptocurrencies such as $BTC (Bitcoin), $ETH (Ethereum), and $SOL (Solana). The remaining 70% will be invested in the equity of banks, exchanges, and payment firms that are increasingly influenced by digital asset adoption and regulatory shifts.
Contextualizing Galaxy’s institutional expansion
This fundraising success follows a period of robust growth for the firm. In 2024, Galaxy Digital reported a net income of $532 million, excluding legal settlement charges, and ended the year with over $10 billion in combined assets under management and stake. The firm has recently prioritized institutional-grade infrastructure, launching GalaxyOne to provide a unified platform for trading, custody, and lending.
The hedge fund launch aligns with a broader trend of biotech and traditional finance firms integrating crypto into their treasuries and portfolios. While earlier Galaxy vehicles focused primarily on directional crypto exposure, this fund targets clients seeking hedged returns amid high volatility.
Galaxy Digital anticipates a highly unpredictable outlook for Bitcoin in 2026, driven by a volatile combination of macroeconomic shifts and political uncertainty. Despite this immediate fog, the firm maintains a positive long-term view, with analyst Alex Thorn setting a $250,000 price target for 2027. However, conflicting data from the options market, which suggests wildly different price extremes, obscures the immediate trajectory.
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