January 23, 2026
By Anjali Kochhar
Galaxy Digital, the cryptocurrency-focused financial services firm founded by billionaire investor Mike Novogratz, is preparing to launch a $100 million hedge fund as it looks to capitalise on volatility across digital assets and traditional markets, according to a report by the Financial Times.
The new fund is expected to launch in the first quarter of 2026 and will target institutional investors and high net worth individuals. People familiar with the matter told the Financial Times that the strategy will take both long and short positions across cryptocurrencies and related equities, reflecting a more cautious and flexible approach compared to previous crypto investment cycles.
Up to 30 per cent of the fund’s capital will be allocated to major digital tokens such as Bitcoin, Ethereum and Solana. The remaining portion will be invested in financial services stocks and infrastructure companies that could benefit from, or be disrupted by, the growing adoption of digital assets and changing regulation.
Galaxy has already secured $100 million in commitments from family offices, wealthy individuals and some institutions, the Financial Times reported. The firm also plans to invest its own capital into the fund, although the exact amount has not been disclosed. Sources said additional investors may join before the fund officially launches.
The move comes at a time when the crypto market has faced renewed pressure. Bitcoin has dropped about 28 per cent from its peak in October and was recently trading around $90,000, as uncertainty around global monetary policy and political developments weighed on investor sentiment, according to the Financial Times.
Joe Armao, who will oversee the new strategy, told the Financial Times that the market may be entering a phase where simple bullish bets are no longer enough. He said the earlier phase of rapid gains appeared to be fading, but added that he remained positive on large cryptocurrencies, particularly Bitcoin, which he said could benefit from potential interest rate cuts by the US Federal Reserve.
Galaxy’s latest fund marks a shift towards more sophisticated hedge fund-style strategies rather than pure exposure to rising crypto prices. The approach is designed to generate returns even during market downturns, which could make it more appealing to cautious institutional investors.
Founded in 2018, Galaxy Digital operates across trading, asset management, investment banking and principal investing. The planned hedge fund highlights how crypto firms are adapting their strategies as the market matures and competition for institutional capital intensifies.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
