Galaxy Digital is preparing to roll out a $100 million hedge fund in Q1, targeting both cryptocurrencies and related 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 $88 949 24h volatility: 2.0% Market cap: $1.78 T Vol. 24h: $58.61 B , Ether ETH $2 956 24h volatility: 4.3% Market cap: $356.95 B Vol. 24h: $33.00 B , and Solana SOL $127.1 24h volatility: 1.3% Market cap: $71.91 B Vol. 24h: $5.24 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.
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