Galaxy Digital is preparing to launch a $100 million hedge fund designed to profit from sharp moves across the crypto and fintech sectors, according to a report by the Financial Times.
The fund is expected to begin operations in the first quarter and will deploy both long and short strategies to capture gains in rising and falling markets.
Around 30% of the fund’s capital will be allocated directly to crypto tokens, reflecting Galaxy’s conviction in selective digital asset opportunities despite ongoing volatility.
The remaining 70% will focus on listed financial services companies that Galaxy believes are being reshaped by blockchain adoption, digital payments, and regulatory change.
The hedge fund has already secured commitments from family offices, high-net-worth individuals, and institutional investors, while Galaxy itself will seed the vehicle with an undisclosed sum.
The strategy aims to benefit from market dislocations rather than directional price bets, allowing the fund to respond quickly to shifting sentiment and macro conditions.
The fund will be managed by Joe Armao, who highlighted structural changes in global markets as a key driver behind the launch.
“Structural shifts, including potential interest-rate cuts and the expanding use of cryptocurrencies, make this an opportune moment,” Joe Armao said.
Expectations around future policy easing by the Federal Reserve have added another layer of complexity to asset pricing across technology and financial stocks.
Galaxy’s move comes after a strong financial performance, with the firm reporting more than $500 million in profit during the third quarter of 2025.
The company currently oversees approximately $17 billion in assets, reflecting its evolution from a trading-focused business into a broader digital asset manager.
Founder and chief executive Mike Novogratz has previously repositioned the firm in response to market cycles, including shifting away from a pure hedge fund model nearly a decade ago.
Beyond asset management, Galaxy continues to expand its infrastructure footprint, recently receiving approval to add 830 megawatts of power capacity at its Helios data centre campus in West Texas.
The approval was granted by ERCOT following the completion of a required large-load interconnection study.
Despite the expansion plans and hedge fund announcement, Galaxy Digital’s shares fell more than 6.4% on Tuesday amid a broader market sell-off.
The stock decline highlights the fragile sentiment still surrounding crypto-linked firms, even as institutional interest and capital deployment continue to build.