What is the Galaxy Sharplink Onchain Yield Fund?

Galaxy and Sharplink are launching a $125 million private fund designed to generate yield from decentralized finance strategies using institutional Ether holdings.

How much money will Galaxy and Sharplink contribute to the fund?

Sharplink plans to contribute $100 million worth of staked Ethereum, while Galaxy will commit an additional $25 million and manage the fund.

Why are institutions interested in DeFi yield strategies?

Institutional investors are increasingly looking for ways to earn returns on large crypto holdings without selling their assets. DeFi protocols can provide staking rewards, liquidity yields and other blockchain-based income opportunities.

How will the fund generate returns?

The fund plans to allocate capital across DeFi liquidity protocols and other onchain yield opportunities. These strategies are designed to produce additional returns while maintaining long-term exposure to Ethereum.

Why is Sharplink using ETH instead of selling it?

Sharplink wants to continue holding Ethereum as a long-term treasury asset while also generating extra yield from those holdings. The strategy mirrors traditional finance approaches where institutions seek returns from idle capital.

How large is Sharplink’s Ethereum treasury?

Sharplink holds more than 868,000 ETH, making it one of the largest corporate Ethereum holders globally. At peak market prices in October, those holdings were worth nearly $4 billion.

What did Mike Novogratz say about the fund?

Mike Novogratz said the structure reflects rising institutional demand for blockchain-native products that offer yield generation and risk management similar to traditional financial markets.

Why did Sharplink report a large quarterly loss?

Sharplink posted a first-quarter net loss of $685.6 million mainly because of unrealized accounting losses tied to Ethereum’s price decline. About $506.7 million of the loss was linked directly to falling ETH valuations.

Galaxy and Sharplink launch $125M ETH yield fund

Written by Mahathir BayenaPublished May. 12 2026Last Updated May. 12 2026

Galaxy and Sharplink plan to launch a $125 million private fund designed to generate yield from decentralised finance strategies using institutional Ether holdings.

The proposed Galaxy Sharplink Onchain Yield Fund is expected to launch in the coming weeks with Sharplink contributing $100 million from its staked Ethereum treasury and Galaxy committing an additional $25 million as the fund’s manager.

The fund will allocate capital across DeFi liquidity protocols and other blockchain-based yield opportunities while allowing Sharplink to maintain long-term exposure to Ether rather than liquidating its holdings.

Galaxy chief executive Mike Novogratz said the structure reflected rising institutional demand for blockchain-native investment products capable of generating yield and managing risk similarly to traditional financial markets.

Sharplink is among the world’s largest corporate Ether holders with more than 868,000 ETH on its balance sheet, which at October market highs were valued at nearly $4 billion.

The company also reported a first-quarter net loss of $685.6 million, largely driven by unrealised accounting losses tied to Ether’s price decline during the quarter, including roughly $506.7 million linked directly to ETH holdings.

Despite the losses, Sharplink said it had earned approximately 18,800 ETH in cumulative staking rewards since launching its Ethereum treasury strategy in June 2025, highlighting the growing role of staking and onchain yield generation in institutional crypto treasury management.

At the time of reporting, Ethereum price was $2,336.13.