CMC News

#GalaxyDigital Preps $100M Hedge Fund for Long-Short #Crypto Bets

Mike Novogratz's Galaxy Digital is preparing a $100 million hedge fund designed to profit from both rising and falling crypto prices, set to launch in the first quarter. The fund will take long and short positions across #digitalassets and traditional equities linked to financial infrastructure.

Up to 30% of capital will flow directly into crypto tokens, according to a Financial Times report Wednesday. The remainder targets financial services stocks expected to be influenced by digital asset regulation, #blockchain adoption, and technological change.

The fund secured $100 million in commitments from family offices, high-net-worth individuals, and select institutional investors. Galaxy confirmed it will make a seed investment but declined to disclose the amount, and may open the strategy with additional capital.

Joe Armao will lead the new fund. He said the market is entering a different phase as the "up only" part of this cycle potentially ends, while maintaining a positive outlook on major assets, including $ETH and $SOL. $BTC remains relevant in an environment shaped by potential Federal Reserve rate cuts, provided equities and gold remain resilient, Armao added.

Beyond crypto-native firms, Galaxy is watching traditional players. Armao cited sell-offs in payments and data companies such as Fiserv, arguing that shifting regulation, blockchain adoption, and advances in #AI are changing valuations across financial services.