Wall Street giant Galaxy Digital has made a big bet on digital assets by launching a $100 million crypto hedge fund. With this hybrid investment strategy, the company intends to allocate 30% of its money into crypto while 70% targets traditional stocks. Securing about $100 million, the project envisions bridging the gap between crypto and conventional finance.
Unveiling Galaxy’s Innovative Crypto Hedge Fund
According to a Financial Times report, Mike Novogratz’s Galaxy Digital has raised $100 million to launch a crypto hedge fund in the first quarter of 2026. As per the report, the company has secured the funds from wealthy individuals, family offices, and large investment firms.
Galaxy Digital claims that the crypto hedge fund will put up to 30% of its money directly into cryptocurrencies like Bitcoin and Ethereum. The rest of the fund, the 70%, will be invested in financial institutions, like banks, asset managers, and payment processors. The fund will be targeting asset managers that embrace blockchain, offer custody solutions, or have influenced by new crypto regulations.
Significantly, this mixed strategy intends to manage risks while capturing the potential for high growth. By investing in companies connected to crypto, blockchain, and regulation, Galaxy’s crypto hedge fund intends to maintain stability and tackle price volatility.
This development comes on the heels of Galaxy’s plans to explore prediction markets. As reported by CoinGape, Galaxy has been in talks with Polymarket and Kalshi for the prediction market launch.
Why This Matters? Financial Experts Weigh In
Financial experts opine that Galaxy’s crypto hedge fund launch is an indication of the digital asset industry coming of age. Analysts from Bernstein Research highlighted the unique advantage of the company by referring to its dual identity of being a crypto-native platform and an investment advisor at the same time. They claim that this setup allows the firm to provide products that are appealing to institutional investors.
Further, the experts also pointed out the importance of regulatory clarity in the crypto industry. They claim that the SEC’s updated regulatory framework under President Trump’s government is the main reason for the increasing influence of crypto among Wall Street giants. Besides that, they also state that the EU’s MiCA framework has lessened legal uncertainty, attracting more financial companies to the crypto market.
For instance, Morgan Stanley is launching a crypto wallet in 2026. The Wall Street bank also intends to provide custody and transaction capabilities for tokenized assets.
In February, derivatives marketplace CME Group will launch future contracts for Cardano, Chainlink, and Stellar. Together, these developments highlight the growing influence of digital assets amid clear regulations.
It is also worth noting that Galaxy Digital’s crypto hedge fund limits its direct exposure to digital assets to address any possible regulatory concerns.
Source: https://coingape.com/galaxy-digital-raises-100m-to-launch-crypto-hedge-fund/
