Galaxy Digital launches $100M hedge fund amid crypto market downturn

Galaxy Digital to Launch New Hedge Fund

Galaxy Digital plans to launch a hedge fund in the first quarter of this year with an initial size of $100 million.
The fund will bet on both rising and falling market conditions.
Around 30% of the fund will be invested in crypto tokens, including Bitcoin, Ether, and Solana.
The remaining capital will target financial services stocks related to digital asset technology and policy shifts.
The fund has secured $100 million from family offices, wealthy individuals, and larger firms. Galaxy will also contribute a seed investment.
Galaxy is the 17th largest corporate holder of Bitcoin with 6,894 BTC.
The firm went public on Nasdaq in May 2025 and offers various Bitcoin-focused products and a crypto index fund linked to the Bloomberg Galaxy Crypto Index.

Market Context

The fund launch coincides with a downturn in the broader crypto market.
Bitcoin has dropped about 29% since its October peak of $126,198 and is trading below $90,000.
This decline has resulted in a $160 billion loss in Bitcoin's market cap over the past week.
While some funds are reducing exposure, Galaxy aims to capitalize on market volatility rather than waiting for a price rebound.