Mike Novogratz’s digital assets company Galaxy has announced plans to launch a hedge fund worth $100 million, which will profit from rising crypto prices as well as falling ones.
Financial Times reports that the fund will launch during the first quarter of this year and be designed to hold both long and short positions in digital assets as well as traditional equity tied to financial infrastructure. reported On Wednesday,
According to the report, up to 30 percent of the capital in the fund is expected to go to cryptocurrency tokens. The remaining portion will be invested into stocks that are related to financial services.
Fund has secured commitments of $100 million already from selected family offices, wealthy individuals, and institutional investors. However, the company can open this strategy using additional capital. Galaxy confirmed that they will invest a certain amount in a new fund, but did not disclose how much.
Related: Wealth transfer may boost crypto adoption among younger investors: Galaxy exec
Crypto’s “up-only” Phase is over
Joe Armao will be leading the fund and he said that market is moving into a new phase. “The ‘up only’ part of this cycle is potentially coming to an end,” The outlet reported that while he was maintaining a favorable outlook for major assets such as Ethereum, he also said (ETHSolana) (SOL). Armao also added that Bitcoin is (BTCGold and equity markets will remain relevant as long as they are resilient.
Galaxy also pays attention to traditional players. Armao pointed to the sale of data and payment companies like Fiserv as evidence that changing regulations, adoption of blockchain and advancements in artificial intelligence have changed valuations throughout financial services.
This move comes after a recent drop in cryptocurrency prices. Bitcoin is now trading at around $90,000. It has dropped about 30% since its peak in October.
Galaxy is back in September. bought around $306 million Solana’s purchases totaled more than $1,5 billion.
Cointelegraph had reached out to Galaxy but hadn’t received a reaction by publication.
Related: Galaxy says Senate crypto bill risks expanding Treasury surveillance authority
Galaxy Digital Closes First Tokenized CLO On Avalanche
Galaxy last week completed its first tokenized The collateralized loan obligations (CLO) are a first step in bringing the private credit market onto the blockchain. Galaxy CLO, 2025-1 deal was issued through Avalanche. It has financed around $75 million of loans so far, anchored with a $50-million allocation by Grove, a institutional credit protocol in the Sky ecosystem.
CLO provides support to Galaxy’s crypto lending division by purchasing consumer loans backed by Bitcoin or Ether originated by Arch Lending. With a capacity of up to $200 million, the CLO can expand. These bonds were tokenized and issued via INX. Anchorage Digital Bank handled custody and tracked real-time the collateral.
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Source: cointelegraph.com
