Galaxy to launch $100 million crypto hedge fund…able to bet on both rising and falling markets

Galaxy, the crypto-focused financial group led by Mike Novogratz, is expected to launch a $100 million crypto hedge fund.

According to a Financial Times report on the 21st (local time), Galaxy plans to roll out a hedge fund in the first quarter of this year that can take positions on both price increases and declines. The fund is said to have already secured $100 million in commitments from family offices, high-net-worth individuals and some institutional investors.

The new fund will invest up to 30% of total assets in crypto tokens, with the remainder allocated to shares of financial services companies expected to be affected by digital asset technology and related regulatory changes. Galaxy will also participate as a seed investor, though it did not disclose the amount.

The fund launch comes amid a recent correction in the crypto market. Bitcoin is down about 28% from its peak in October last year, and has also fallen 5% this week, trading around $90,000.

In an interview with the Financial Times, Joe Armao, who oversees the fund at Galaxy, said the one-way rally phase of the current cycle may be entering its final stage. He added that he remains positive over the medium to long term on major crypto assets such as Bitcoin, Ethereum (ETH) and Solana.

Armao said Bitcoin remains an asset that is hard to ignore this year, given the possibility of additional rate cuts by the Federal Reserve and trends in the equity and gold markets. He added that structural changes are emerging not only among crypto companies but across the broader traditional financial services sector, including banking, payments and financial software.

Galaxy operates a crypto investment banking and asset management business and currently manages about $17 billion in digital assets. The company previously reported a profit of $505 million in the third quarter of 2025.