Galaxy Digital Bets on Rising and Falling Crypto Prices with New Fund

TLDR

• Galaxy Digital is launching a $100 million hedge fund aimed at profiting from both rising and falling crypto prices.
• The fund will allocate up to 30% of its capital to digital assets like Ethereum, Solana, and Bitcoin.
• The remaining capital will be invested in financial services stocks influenced by blockchain adoption and digital asset regulations.
• The hedge fund has secured $100 million in commitments from family offices, high-net-worth individuals, and select institutional investors.
• Joe Armao will lead the fund and remains optimistic about major assets like Ethereum and Bitcoin despite market shifts.

Galaxy Digital, Mike Novogratz’s digital asset firm, is set to launch a $100 million hedge fund focused on capitalizing on both rising and falling crypto prices. The fund, expected to launch in the first quarter of the year, will focus on long and short positions across digital assets and traditional financial infrastructure stocks. It aims to invest up to 30% of its capital into cryptocurrencies, with the remainder directed at financial services stocks impacted by blockchain adoption and digital asset regulations.

Galaxy’s Fund to Target Crypto Tokens and Financial Stocks

The new hedge fund will allocate a portion of its capital to digital assets such as Ethereum (ETH) and Solana (SOL), while keeping a close eye on Bitcoin (BTC). Joe Armao, the fund’s manager, stated, “The ‘up only’ part of this cycle is potentially coming to an end,” referencing the shift in the crypto market’s current phase. Despite this, he remains optimistic about Ethereum and Solana, noting that Bitcoin’s relevance persists amid the possibility of U.S. Federal Reserve rate cuts.

Armao also sees potential in traditional financial stocks, particularly those exposed to blockchain and cryptocurrency regulation. He highlighted that companies such as Fiserv, which provide data analytics and payments services, have seen significant drops in their stock prices due to regulatory shifts and growing fears surrounding AI. The fund will also focus on stocks of companies affected by the rapid advancements in artificial intelligence and blockchain technologies.

Galaxy Targets Profits from Crypto Market Shifts

Galaxy has already secured $100 million in commitments from high-net-worth individuals, family offices, and select institutional investors. The company may expand the fund with additional capital in the future. In line with its strategy, Galaxy confirmed it would make a seed investment, though the exact amount has not been disclosed.

The fund’s primary goal is to generate profits from both rising and falling digital asset prices, marking a shift from the traditional “buy and hold” approach seen in past years. According to Armao, the changing market dynamics present new opportunities for investors willing to adapt to a more volatile environment.

With backing from various institutional investors, Galaxy aims to capitalize on both market downturns and upswings, leveraging its expertise in crypto and traditional markets alike.

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