Galaxy Digital Plans Crypto Hedge Fund Rollout

Galaxy Digital is preparing to roll out a $100 million hedge fund in Q1, targeting both cryptocurrencies and related stocks.

Parth Dubey By Parth Dubey Julia Sakovich Editor Julia Sakovich Updated 2 mins read
Galaxy Digital Plans Crypto Hedge Fund Rollout

Key Notes

  • Galaxy plans to launch the hedge fund in the first quarter with $100 million in initial capital.
  • Around 30% of the fund will be allocated to crypto tokens, including major assets.
  • The remaining capital will target crypto-related financial services stocks.

Galaxy Digital is reportedly planning to launch a new hedge fund aimed at trading digital assets and related stocks. The fund is set to start in the first quarter of this year with an initial size of $100 million.

The strategy allows bets on both rising and falling market conditions.

Galaxy explained that the new fund strategy allows bets on both rising and falling prices. The firm will place around 30% of the fund into crypto tokens, including Bitcoin BTC $89 036 24h volatility: 2.2% Market cap: $1.77 T Vol. 24h: $60.22 B , Ether ETH $2 944 24h volatility: 4.6% Market cap: $353.08 B Vol. 24h: $33.58 B , and Solana SOL $127.3 24h volatility: 1.1% Market cap: $71.84 B Vol. 24h: $5.08 B . The remaining capital will go into financial services stocks related to digital asset tech and policy shifts.

The fund has secured $100 million from family offices, wealthy individuals, and a small group of larger firms. Galaxy will also make a seed investment in the fund, according to the report.

Galaxy, founded in 2017, runs crypto-focused banking and asset management units. Data from BitcoinTreasuries.net shows that it is the 17th biggest corporate holder of Bitcoin with 6,894 BTC. The firm also went public on Nasdaq in May 2025.

Galaxy already runs several Bitcoin-focused products that give managed access to the asset without direct ownership. It also runs a crypto index fund tied to the Bloomberg Galaxy Crypto Index, which has exposure across multiple cryptocurrencies.

Sharp Crypto Market Pullback

The new fund launch comes as the broader crypto market sees a downturn. Bitcoin has dropped about 29% since its October peak of $126,198. The decline has removed much of the rally that followed early optimism around US policy under President Donald Trump, who pledged support for the sector.

At the time of writing, Bitcoin is trading below the key $90,000 level. The cryptocurrency is down about 5.7% over the past week, losing $160 billion in market cap. While some funds are reducing exposure due to this drop, Galaxy is targeting volatility instead of waiting for a price rebound.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Parth Dubey

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.

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