Galaxy, the digital assets group founded by billionaire investor Mike Novogratz, is preparing to launch a $100m cryptocurrency-focused hedge fund as market volatility creates opportunities on both the long and short side, according to a report by the Financial Times.
The new fund is expected to launch in the first quarter of 2026 and will pursue a flexible strategy designed to profit from both rising and falling prices across the digital assets ecosystem.
The report cites unnamed people familiar with the matter as revealing that the vehicle has secured $100m in commitments from family offices, high-net-worth individuals and a number of institutional investors, with the potential for additional capital at launch. Galaxy will also provide seed capital to the fund, although it declined to disclose the size of its investment.
The portfolio will allocate up to 30% of assets directly to crypto tokens, with the remainder invested in listed financial services companies expected to be impacted by the evolution of digital asset technology, regulation and market structure.
The launch comes against the backdrop of a sharp pullback in cryptocurrency markets. Bitcoin has fallen around 28% from its October peak and was trading near $90,000 this week, following renewed geopolitical tensions and concerns over trade policy.
Joe Armao, who will lead the strategy, said the market has entered a more complex phase of the crypto cycle.
“The ‘up-only’ phase of this cycle is potentially coming to an end,” Armao said, adding that he remains constructive on bitcoin and other major cryptocurrencies including ether and solana.
He said bitcoin could remain a key macro asset in 2026, particularly in an environment of potential US interest rate cuts, provided broader equity markets and gold remain resilient.
The fund will also seek opportunities across publicly listed companies exposed to digital asset adoption and technological disruption, including banks, payments firms and financial software providers.
Armao said the strategy aims to identify both winners and losers as digital assets, regulation and artificial intelligence reshape the global financial system.
“You can play disrupters, winning and losing themes across financial services,” he said.
Galaxy, which oversees approximately $17bn in digital assets across its investment banking and asset management businesses, was founded nine years ago by Novogratz. The firm reported profits of $505m in the third quarter of 2025.
