Mike Novogratz’s Galaxy To Start $100 Million Crypto Hedge Fund Amid Market Turbulence ⋆ ZyCrypto

Crypto entrepreneur and billionaire Mike Novogratz’s company, Galaxy Digital, is preparing to debut a $100 million hedge fund in the first quarter of this year, aiming to profit from the mayhem in both the digital asset and fintech industries.

The new fund will take both long and short positions, indicating it plans to make money both when prices rise and when they drop, the Financial Times reported on Wednesday.

Up to 30% of the fund’s assets will be allocated directly to crypto tokens, with the rest being invested in financial services stocks that Galaxy believes will be reshaped by changes in digital asset regulation, blockchain adoption, and technological changes.

Galaxy has secured $100 million in investment from family offices, high-net-worth investors, and some larger institutions, according to the report, though it may launch with more commitments. The digital assets infrastructure company confirmed to the FT that it will make a seed investment, but did not disclose the exact amount.

Bitcoin’s Price Is “Disappointing”

Joe Armao, who will serve as the hedge fund’s manager, noted that the market is entering a different phase. “The ‘up only’ part of this cycle is potentially coming to an end,” he told the newspaper, while expressing a bullish stance on top altcoins such as Ether (ETH) and Solana (SOL). In Armao’s view, Bitcoin remains relevant amid potential Federal Reserve interest-rate cuts, assuming stocks and gold hold steady.

Bitcoin dropped from $95,000 on Friday after Trump threatened 10% tariffs on European nations opposing his push for U.S. control of Greenland, reviving fears of trade conflict and policy volatility.

At press time, the world’s largest crypto by market cap was trading at $89,429, a slight rebound after briefly slipping to $87,901 earlier in the day.

Novogratz stated in an X post on Tuesday that Bitcoin’s current price is “disappointing as it is still being met with selling,” adding that it has to revisit the $100,000- $103,000 range to resume its upward trajectory. “I think it will in time,” he opined. 

In July 2025, he predicted that Bitcoin would smash the $150,000 milestone before the end of that year, a forecast that did not materialize as the asset peaked at $126,080 later in October.