TLDR
- Mike Novogratz’s Galaxy Digital raises $100 million for new hedge fund launching in Q1 2026
- Fund will allocate 30% to direct crypto investments, 70% to blockchain-affected financial services stocks
- Investment strategy includes both long and short positions to capitalize on market volatility
- Galaxy Digital manages $17 billion in digital assets and posted $505 million profit in Q3 2025
- Fund targets family offices, high-net-worth individuals, and institutional investors
Mike Novogratz’s Galaxy Digital has secured $100 million in commitments for a new cryptocurrency hedge fund set to launch in the first quarter of 2026. The digital asset investment firm closed funding from family offices, high-net-worth investors, and institutional backers.
The fund represents a return to Novogratz’s original vision for Galaxy Digital. He initially conceived the firm as a hedge fund nine years ago before shifting focus to asset management and investment banking.
Galaxy Digital currently manages approximately $17 billion in digital assets. The company went public on August 1, 2018, becoming one of the first publicly traded crypto investment firms in the United States.
Dual Investment Strategy Targets Crypto and Traditional Finance
The new hedge fund will deploy up to 30% of capital directly into cryptocurrency tokens. The remaining 70% will target financial services companies impacted by blockchain technology, artificial intelligence, and regulatory developments.
Joe Armao will manage the fund’s operations. He explained the strategy aims to identify both successful and struggling companies within the digital finance sector.
The fund can take both long and short positions across its portfolio. This approach allows the fund to profit from declining prices as well as appreciation.
Armao noted that Bitcoin and major cryptocurrencies like Ether and Solana remain attractive long-term investments. He suggested continued Federal Reserve interest rate cuts could support these assets.
Market Context and Performance
The fund launch occurs as Bitcoin trades near $90,000 after falling roughly 28% from its October peak. The crypto market has experienced increased volatility entering 2026.
Galaxy Digital reported strong financial performance despite market turbulence. The firm posted $505 million in profit during the third quarter of 2025.
Galaxy Digital stock traded at $31.72, down 1.19% at press time. The company may accept additional commitments beyond the initial $100 million raised.
Sources familiar with the fundraising confirmed the $100 million figure to the Financial Times. Galaxy Digital has not disclosed whether the fund reached its target allocation or remains open to new investors.
The hedge fund structure differs from traditional crypto investment vehicles that focus solely on price appreciation. By incorporating short positions and traditional finance exposure, the fund can generate returns in both rising and falling markets.
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