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- Galaxy plans a $100M fund with 30% crypto tokens and 70% financial services stocks.
- The fund launches as Bitcoin trades near $89,941, down about 29% from October 2025 peak.
- Liquidity tests for prediction markets expand via market-making on Polymarket and Kalshi.
Galaxy Digital is preparing a $100 million hedge fund that combines cryptocurrency tokens with financial services stocks. The fund will commit up to 30% of its capital to crypto tokens and place the remaining 70% in financial equities. The structure reflects Galaxy’s plan to target markets shaped by digital asset technologies and new regulatory developments.
The Financial Times reported on the initiative. The launch comes as Bitcoin trades far below its October 2025 peak. Bitcoin has fallen about 29% from its all-time high of $126,198. It is currently trading at $89,941. The token is down 0.59% in the past 24 hours and has a trading volume of $53.53 billion.
Galaxy Stays Bullish on Bitcoin, Ethereum, and Solana
Joe Armao, the head of the fund, said Galaxy remains positive on Bitcoin, Ethereum, and Solana. He stated that the goal is to identify companies that will gain or lose during the next cycle. He did not specify which tokens the hedge fund intends to accumulate.
Galaxy Digital will also provide a seed investment. The firm has not shared the exact amount. Sources told the Financial Times that family offices and high-net-worth investors have already shown interest. Larger institutions have also made commitments. Additional allocations are expected before the official start.
Also Read: Coinbase CEO Focuses on U.S. Crypto Market Bill During Davos Talks
The fund is made up of a combination of crypto assets and traditional stocks. The strategy will seek market expansion in digital token markets and firms associated with blockchain adoption. Galaxy believes that this composition can effectively manage risk. It provides experience in both volatile and stable areas of the financial system.
On-Chain Data Highlights BTC Transfers
There were critics of the branding of the fund. Jacob King, SwanDesk CEO, noted that the majority of holdings are not crypto tokens. He was concerned with the name of the strategy being called a crypto fund. King further referred to the earlier scandals of Galaxy being related to LUNA. He advised investors to be cautious.
Galaxy has been transparent in its management of massive crypto positions. Lookonchain confirmed the movement of 900 BTC last month. This volume was transferred at the value of 81.59 million. In early 2018, Galaxy purchased 80,000 BTC from a Satoshi-era investor. The client included the sale in their real estate planning.
Galaxy is also studying activity in prediction markets. The firm has worked with platforms such as Polymarket and Kalshi Inc. Mike Novogratz said Galaxy has been testing small market-making operations. The goal is to understand liquidity needs. The experiments may expand if early results prove useful.
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