Galaxy Digital and Sharplink said they have entered into a non-binding agreement to launch a $125 million institutional onchain yield fund aimed at deploying capital across DeFi and other yield-generating blockchain strategies. Under the proposed structure, Galaxy will contribute $25 million and Sharplink will commit $100 million, with Galaxy set to manage the fund.
Capital earmarked for onchain liquidity and early-stage protocols
The initiative is designed to put Sharplink’s ETH treasury to work rather than leave it idle on the balance sheet. According to the announcement, the capital will be allocated to onchain liquidity strategies and support for early-stage protocols. Sharplink said the deployment will be guided by long-term alignment and focused on opportunities that can generate risk-managed, ETH-denominated yield.
Sharplink Chief Investment Officer Matthew Sheffield said the company wants “to preserve our core staked Ethereum exposure while generating excess returns that accrue back to our shareholders.” That frames the fund as an extension of treasury management: keep the core staked ETH position intact, then seek additional return on top of it.
Galaxy says institutional capital is moving onchain
Galaxy founder and CEO Mike Novogratz said institutional capital is moving onchain and that the supporting infrastructure has matured enough for allocators to access yield, liquidity, and risk management with the rigor they expect in traditional markets. For Sharplink, the fund fits into a broader treasury strategy. The company has said it is actively looking for ways to earn yield on its permanent capital.
Sharplink also disclosed updated balance-sheet figures. The company reported a positive first quarter in 2026 and total holdings above 870,000 ETH. The article also states that Sharplink currently holds 867,798 ETH, worth about $1.72 billion, making it the second-largest Ethereum digital asset treasury behind Bitmine Inmersion, which holds more than 5 million ETH. Sharplink said it received 16,436 ETH in staking rewards, posted $12.1 million in total revenue, and recorded more than $685 million in unrealized losses due to market conditions.
The fund remains at the agreement stage and many operating details have not been released. What is clear from the announcement is the intended direction: use part of Sharplink’s ETH treasury in onchain yield and liquidity strategies while keeping its core staked Ethereum exposure in place.