Galaxy Digital is preparing to launch a $100 million hedge fund in the first quarter of 2026. The vehicle will use a long-short strategy across digital assets and traditional financial services companies, expanding the firm’s institutional product lineup as volatility returns to crypto markets.
Up to 30% of the fund will go directly into tokens
According to the Financial Times, the fund has already secured its initial $100 million commitment from family offices, high-net-worth individuals, and institutional investors, with Galaxy Digital contributing seed capital. Under the allocation plan, as much as 30% of assets will be invested directly in crypto tokens, including Bitcoin, Ether, and Solana.
The remaining 70% will be directed toward publicly traded financial services companies that Galaxy expects to be affected by changes in digital asset regulation and broader blockchain adoption. That basket includes exchanges, mining businesses, custody providers, and fintech firms with digital asset exposure. The structure combines direct token exposure with equity positions meant to spread risk across adjacent parts of the market.
Built for institutions that want managed crypto exposure
The design is aimed at investors seeking access to crypto through a managed and regulated framework rather than holding tokens outright. For many traditional allocators, direct ownership brings custody, compliance, and operational issues. A hedge fund structure offers a more familiar route.
Joe Armao, who will lead the new fund, said the aggressive growth phase of the current crypto cycle may be losing momentum. He still holds a bullish long-term view on major digital assets, particularly if the Federal Reserve moves toward rate cuts. The source material did not include additional detail on position sizing or risk controls.
Launch comes with Bitcoin near $90,000
The fund is being prepared with Bitcoin trading at about $90,000, down roughly 4% over the past week from recent highs. That shift has pushed institutions to revisit how crypto should sit inside broader portfolios. Instead of relying on simple directional exposure, the fund is set up to actively manage both long and short positions across tokens and equities.
Founded in 2017, Galaxy Digital has grown into a major digital asset firm with about $17 billion in assets under management. Its business spans trading, lending, asset management, and venture investing. This new hedge fund adds another layer to those offerings and reflects a market that is becoming less about broad rallies and more about trade selection, structure, and regulation-sensitive positioning.