Galaxy plans $100M hedge fund as crypto markets turn two-way

Galaxy is preparing to launch a $100 million hedge fund in the first quarter designed to profit from both rising and falling cryptocurrency prices as market conditions evolve.

The fund will take long and short positions across digital assets and selected financial services equities linked to blockchain adoption and regulatory change.

Around 30% of the fund’s capital will be allocated directly to crypto tokens, with the remainder invested in traditional stocks tied to financial infrastructure.

The strategy has already secured $100 million in commitments from family offices, high-net-worth individuals and select institutional investors.

Galaxy confirmed it will seed the fund itself but did not disclose the size of its initial investment.

Joe Armao, who will lead the fund, said the market is moving beyond an “up-only” phase while maintaining a constructive outlook on leading assets.

“The ‘up only’ part of this cycle is potentially coming to an end,”

Joe Armao said.

Armao said Ethereum, Solana and Bitcoin remain relevant as macro conditions shift and investors reassess risk.

The launch follows a broader pullback in crypto markets, with Bitcoin trading well below its previous cycle highs.

Galaxy has also been increasing exposure to blockchain-related opportunities, including recent tokenisation initiatives in private credit markets.

At the time of reporting, Ethereum price was $2,970.37.