A new crypto fund in 2026: Galaxy enters with $100 million capital
Galaxy, the investment firm founded by billionaire Mike Novogratz, has announced the launch of a new $100 million hedge fund dedicated to digital assets, in a clear sign of institutional confidence in the cryptocurrency sector. The move comes at a time of high volatility in the global market, with Bitcoin having seen a correction after peaking in the last quarter of 2025.
The fund is designed to operate in the first quarter of 2026 and has been set up with the aim of providing investors with structured exposure to digital assets, balancing growth opportunities in cryptocurrencies with investments in technology and financial services-related securities. According to reports, about 30 per cent of the resources will be allocated directly into digital tokens, while the remaining 70 per cent will be invested in listed companies that benefit from the expansion of blockchain technologies and related infrastructure.
A difficult but strategic market context
Galaxy's launch of the fund comes in a complex market context: after peaking at over USD 126 000 in the second half of 2025, Bitcoin has undergone a significant period of correction, falling below the USD 90 000 mark.
The descent reduced the overall capitalisation of cryptocurrencies and increased speculative pressures among investors. Despite this, Galaxy consolidated the view that crypto markets remain an attractive asset class in the medium to long term, especially when combined with broader macro strategies. During 2025, the company expanded its global presence and began exploring new opportunities in tokenization, fintech, and other blockchain-related infrastructure.
"The continued growth phase of this cycle may be nearing an end,"
said Joe Armao, head of the new fund, adding that an active approach and diversified allocation between cryptocurrencies and traditional technology assets can help institutional investors and family offices balance risk and return.
Who participates in the fund and why it matters
The new hedge fund has already attracted capital from family offices, wealthy investors and some lesser-known institutions, with Galaxy itself contributing an undisclosed "seed amount".
According to early investors, the combined approach - combining allocations in cryptocurrencies and technology stocks - allows it to capture upside in digital markets while maintaining a traditional cushion in sectors that benefit from the same technology.
This strategy has also been made possible by the company's robust results in recent years: in Q3 2025 Galaxy reported profits of $505 million, reflecting solid operational execution despite macroeconomic uncertainty.
The implications for the cryptocurrency market
Galaxy's announcement comes amid growing institutional interest in the cryptocurrency market. At the beginning of 2026, several Bitcoin-related products, such as BTC-based ETFs, saw significant inflows, demonstrating that demand from asset managers and institutional investors remains stable.
The new dedicated fund not only reflects Mike Novogratz's confidence in the resilience of cryptocurrencies, but also highlights an evolution of the sector towards more sophisticated and regulated financial instruments. This approach aims to attract broader capital than traditional retail investors.
Key points to consider:
- Institutional demand on the rise: ETFs and Bitcoin-related products are seeing significant inflows.
- Expert confidence: Galaxy's choice signals an established optimism towards cryptos.
- Regulated and sophisticated instruments: The fund combines innovation and regulatory certainty to attract institutional capital.
- Significant volatility: Bitcoin and other digital assets remain highly volatile, increasing market risks.
- Active risk management: Managers must adopt dynamic risk management strategies and hedging tools to protect returns.
Conclusion: a positive signal for the sector
The launch of Galaxy's $100 million fund represents an important sign of maturation in the crypto landscape. At a time when many investors remain cautious, the willingness to create professional digital asset-based investment structures indicates that long-term institutional confidence has not waned.
As markets continue to navigate evolving regulations, macroeconomic pressures and technological innovations, initiatives such as these could help solidify cryptocurrencies' transition from speculative asset to strategic component in institutional portfolios.
