TL;DR
- Galaxy will launch a $100 million long/short crypto hedge fund. Its debut is scheduled for the first quarter and it already has committed investor capital.
- The fund will allocate roughly 30% to cryptocurrencies, with the remainder invested in financial services equities, payments, data, and regulatory infrastructure.
- The firm maintains exposure to Bitcoin, Ethereum, and Solana, increased its SOL position, and advanced its tokenization efforts.
Galaxy is preparing the launch of a new crypto hedge fund with a long/short approach and a structure designed to operate in both bullish and bearish markets.
The vehicle targets an initial size of $100 million and is expected to debut during the first quarter of the year. The capital already includes commitments from family offices, high-net-worth individuals, and selected institutions. The firm will also contribute its own capital as seed funding, although it did not disclose the amount.
How the Fund Is Structured
The strategy departs from the traditional model of crypto funds focused exclusively on tokens. About 30% of the capital will be allocated to digital assets, while the rest will be invested in shares of financial services companies tied to infrastructure, payments, data, and regulation-sensitive sectors. The portfolio combines direct exposure to the blockchain ecosystem with positions in publicly traded companies affected by technological adoption and regulatory changes.
Joe Armao will oversee the fund’s management. Galaxy states that the current market shows higher volatility, wider return dispersion, and relative value opportunities. Within this framework, the strategy allows for both long and short positions in cryptocurrencies as well as in traditional financial sector equities.
Galaxy Continues to Back the Industry and Diversify
Galaxy maintains exposure to networks such as Ethereum and Solana, which remain core components of its allocations. Bitcoin retains a role within portfolios aligned with macroeconomic variables, including expectations around interest rates in the United States. The firm indicates that operations have moved away from reliance on broad market rallies toward active management based on market movements.
The fund’s launch coincides with a price adjustment phase in the crypto market. Bitcoin is trading near $90,000 after posting repeated pullbacks. At the same time, Galaxy increased its exposure to Solana and accumulated more than $1.5 billion worth of SOL over recent months.
Finally, tokenization remains a central focus. The company recently completed its first tokenized collateralized loan obligation, Galaxy CLO 2025-1, issued on Avalanche. The instrument integrates private credit with on-chain issuance, institutional custody, and real-time collateral monitoring
