Galaxy Digital Unveils $100M Hedge Fund for Long-Short Crypto Bets

Galaxy Digital, led by Mike Novogratz, is preparing to launch a $100 million hedge fund that will take long and short positions across digital assets and traditional equities. The fund aims to profit from both rising and falling crypto prices.

The fund secured commitments from family offices, high-net-worth individuals, and select institutional investors for the full $100 million. Up to 30% of capital will flow directly into crypto tokens, while the remainder will target financial services stocks influenced by digital asset regulation, blockchain adoption, and technological change.

Joe Armao, who will lead the new fund, said the market is entering a different phase as the 'up only' part of this cycle potentially ends. He maintains a positive outlook on major assets, including Ethereum and Solana, but notes that Bitcoin remains relevant in an environment shaped by potential Federal Reserve rate cuts.

Galaxy Digital has been actively buying into cryptocurrencies, with recent investments totaling over $1.5 billion. The company also completed its first tokenized collateralized loan obligation last week, called Galaxy CLO 2025-1, issued on Avalanche and financing around $75 million in loans to date.