Galaxy to launch $100 million long–short crypto hedge fund in Q1

Mike Novogratz’s Galaxy is preparing to launch a $100 million hedge fund that will take long and short positions in cryptocurrencies and related equities, the Financial Times reported, with the strategy due to start in the first quarter. The fund will allocate up to 30% of capital directly to crypto tokens, with the remainder invested in financial services stocks expected to be affected by digital asset regulation, blockchain adoption and technological change.

It has reportedly secured $100 million in commitments from family offices, high‑net‑worth individuals and select institutional investors, and Galaxy told the FT it will make a seed investment but declined to disclose the amount; the company may open the strategy with additional capital.

Joe Armao, who will lead the fund, told the outlet that the market’s ‘‘up‑only’’ phase is ‘‘potentially coming to an end’’ while maintaining a positive view on major assets including Ethereum and Solana. He also said Bitcoin remains relevant if equities and gold hold up amid potential US Federal Reserve rate cuts, and cited sell‑offs in payments and data companies such as Fiserv as evidence that regulation, blockchain adoption and advances in artificial intelligence are changing valuations across financial services.

Key Topics

Crypto, Galaxy Digital, Hedge Fund, Joe Armao, Bitcoin, Ethereum