Galaxy Digital plans $100M long-short fund for crypto and stocks
Galaxy, the digital asset firm founded by Mike Novogratz, plans to introduce a $100 million hedge fund designed to benefit from both gains and declines in cryptocurrency markets, the Financial Times reported on Wednesday. The strategy, expected to launch in the first quarter, will take long and short positions across digital assets and in traditional equities tied to financial infrastructure.
According to the report, as much as 30% of the fund’s capital will be invested directly in crypto tokens. The remaining portion will focus on financial services stocks expected to be affected by digital asset regulation, blockchain adoption and broader technological shifts. The vehicle has secured $100 million in commitments from family offices, high-net-worth individuals and select institutional investors, with the company indicating it may add additional capital at launch. Galaxy confirmed to the FT that it will provide a seed investment but did not disclose the amount.
Galaxy signals end of “up-only” market phase
Joe Armao, who will oversee the new fund, said market conditions are evolving. “The ‘up only’ part of this cycle is potentially coming to an end,” he told the outlet, while expressing a constructive view on major assets including Ethereum (ETH) and Solana (SOL). Armao noted that Bitcoin (BTC) continues to play a role in a potential U.S. Federal Reserve rate-cut environment, assuming equities and gold remain resilient.
Beyond crypto-native companies, Galaxy is monitoring traditional financial firms. Armao pointed to recent drawdowns in payments and data providers such as Fiserv, saying that changing regulation, increasing blockchain integration and advances in artificial intelligence are influencing valuations across the financial services sector.
The plans come amid a recent pullback in digital assets. Bitcoin has fallen about 30% from its October peak and is trading near $90,000. Bitcoin is down 12% over the past year. Source: CoinMarketCap
In September, Galaxy purchased approximately $306 million in Solana, continuing a buying streak that has exceeded $1.5 billion.
Galaxy Digital completes first tokenized CLO on Avalanche
Last week, Galaxy closed its first tokenized collateralized loan obligation (CLO), advancing efforts to bring private credit onto blockchain infrastructure. The transaction, named Galaxy CLO 2025-1, was issued on Avalanche and has financed about $75 million in loans to date, anchored by a $50 million allocation from Grove, an institutional credit protocol within the Sky ecosystem.
The CLO supports Galaxy’s crypto lending business by purchasing overcollateralized consumer loans backed by Bitcoin and Ether that are originated by Arch Lending, with capacity to scale up to $200 million. The bonds were issued and tokenized via INX, while Anchorage Digital Bank provides custody and real-time collateral monitoring.
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