Novogratz's Galaxy Digital plans $100 million hedge fund with crypto focus: report

Galaxy Digital is launching a $100 million hedge fund in the first quarter, according to a Wednesday report from the Financial Times.

The new fund plans to allocate up to 30% of its assets to cryptocurrencies, with the remaining 70% invested in equities tied to traditional financial services, the report said.

The vehicle has received $100 million in commitments from family offices, high-net-worth individuals and select institutional investors, the FT reported, citing people familiar with the matter. Galaxy confirmed it is providing a seed investment to the fund but did not disclose the amount.

Fund head Joe Armao said in the report that the strategy is designed for a market environment where the sustained, unilateral rallies of recent years may be ending. He stated the fund would seek gains by identifying companies poised to win or lose from technological and regulatory disruption within financial services, including from digital assets and artificial intelligence.

The Block has reached out to Galaxy for further comment.

The upcoming launch follows an active period for the Mike Novogratz-founded firm, which was established nine years ago and oversees about $17 billion in digital assets, according to its website.

Galaxy reported $505 million in profit for the third quarter of 2025, reflecting gains across its asset management, trading, and investment banking operations during a period of elevated market activity.

The company has also continued to diversify its operations following Bitcoin's fourth halving in April 2024, which cut block rewards from 6.25 BTC to 3.125 BTC. In October 2025, Galaxy secured a $460 million strategic investment to convert part of its Texas mining facility into an AI data center hub for CoreWeave.

Last week, the firm closed a $75 million tokenized collateralized loan obligation on the Avalanche blockchain to finance consumer loans through Arch Lending.