Galaxy Digital, the crypto investment firm led by Mike Novogratz, has raised $100 million for a brand-new hedge fund that’s set to launch in early 2026. The fund is backed by family offices, wealthy individuals, and institutional investors who are betting on the future of digital finance.

This new hedge fund marks a return to Novogratz’s original vision for Galaxy Digital, which started out as a hedge fund nearly a decade ago. Over the years, the company evolved into a major player in digital asset management and investment banking. Today, Galaxy Digital manages around $17 billion in digital assets and continues to grow despite market ups and downs.

The fund will use a split investment strategy. About 30% of the money will go directly into cryptocurrencies like Bitcoin, Ethereum, and Solana. The other 70% will be invested in financial companies that are being changed or disrupted by blockchain technology, artificial intelligence, and new regulations. This includes both winners and losers in the digital finance world.

One key feature of this hedge fund is that it will use both long and short positions. That means it can make money whether prices go up or down. This flexible strategy is designed to take advantage of the often-volatile crypto markets.

The fund is being run by Joe Armao, who says it’s all about finding opportunities in companies that are either thriving or struggling because of tech changes in finance. He also believes Bitcoin and other major cryptocurrencies still have strong potential, especially if the U.S. Federal Reserve continues cutting interest rates.

The launch comes at a time when the crypto market is experiencing big swings. Bitcoin is currently trading near $90,000 but has dropped about 28% from its high in October. Even with this volatility, Galaxy Digital reported an impressive $505 million profit in the third quarter of 2025.

Galaxy Digital’s stock is currently trading at $31.72, slightly down by 1.19%. Although the fund has already secured $100 million in commitments, there’s a possibility they might accept more investors going forward.

Unlike typical crypto funds that just hold digital coins and wait for them to go up, this new hedge fund is built to handle both good times and bad. By including traditional financial stocks and taking short positions when needed, it aims to deliver returns no matter what the market is doing.

Key terms: Galaxy Digital, crypto hedge fund, Mike Novogratz, Bitcoin, Ethereum, Solana, blockchain investments, financial services disruption, digital asset management, long and short strategy, market volatility, institutional crypto investing.