SharpLink, Galaxy Digital Unleash $125M Blockchain Yield Fund
Galaxy Digital and SharpLink have launched a $125 million 'on-chain yield fund', which will use blockchain-based tactics to generate returns from Ethereum (ETH) holdings. The fund, managed by Galaxy Digital, will employ strategies such as lending, liquidity provision, staking, or restaking, and other decentralized finance (DeFi) activities to maximize yields.
The fund's total committed capital is $125 million, with SharpLink contributing $100 million from its existing ETH stock and Galaxy Digital adding an additional $25 million. This move aims to boost the economic value of SharpLink's ETH holdings beyond mere price growth.
Galaxy Digital's role in overseeing the fund includes evaluating DeFi opportunities, performing due diligence, and managing risks such as market volatility, liquidity problems, and smart contract failures.