**Galaxy Launches $100 Million Crypto Hedge Fund Despite Market Dip**

In a strong signal that big investors are still interested in crypto, Galaxy is moving ahead with a new $100 million hedge fund—even as the overall crypto market faces a recent pullback.

**Galaxy’s New Crypto Hedge Fund Explained**

Galaxy, the digital asset company started by billionaire Mike Novogratz, is launching a $100 million hedge fund focused on trading both cryptocurrencies and stocks related to the blockchain space. This new fund is set to launch in the first quarter of the year and is designed to make money whether prices go up or down.

Unlike traditional crypto investment products that only profit when prices rise, this fund uses a long/short strategy. That means it can bet on both gains and losses, giving it more flexibility—especially useful during times when crypto prices are falling.

The fund will be part of Galaxy’s larger asset management division, which currently handles about $17 billion in digital assets. This marks a more focused effort by Galaxy to invest in public markets that are connected to blockchain trends.

**What the Fund Will Invest In**

The new hedge fund will use a mixed strategy. About 30% of its portfolio will go directly into crypto tokens like Bitcoin and Ethereum. The rest will be invested in financial stocks that are closely tied to crypto, such as companies in payments, banking, and trading that are using or being affected by blockchain technology.

This mix allows the fund to take advantage of both direct crypto growth and stock market opportunities created by the spread of blockchain. It also gives the fund managers more tools to deal with changing rules, market setups, or big economic shifts that might affect listed companies.

So far, the fund has already raised the full $100 million from wealthy individuals, family offices, and institutional investors. There’s still room for more investments before it officially launches, depending on interest and available space.

Galaxy will also invest its own money into the fund to show commitment and align its interests with outside investors.

**Why Launch Now?**

This fund is launching at a tricky time for crypto. Bitcoin has fallen around 28% from its recent high and is trading near $90,000. This week alone, it dropped about 5%, showing how volatile the market is right now.

The recent dip is partly due to global trade concerns after political tensions flared up. As a result, investors are feeling nervous, especially around riskier assets like crypto—even though traditional markets have stayed fairly stable.

Despite this uncertainty, Galaxy believes now is actually a good time for active strategies like this hedge fund. Being able to bet both ways—on prices rising or falling—can help reduce risk while still offering growth potential.

**Meet the Fund Manager: Joe Armao**

Joe Armao will lead the new hedge fund. He believes the easy money days in crypto might be over, but he still sees major tokens like Bitcoin, Ethereum, and Solana as smart long-term investments for institutional investors.

Armao says that as interest rates possibly start falling and regular markets stay steady, Bitcoin could continue to play an important role in investment portfolios. He also thinks that a flexible long/short approach is better suited to handle changing rules, liquidity levels, and macroeconomic shifts than just holding onto tokens.

This new fund will look for winners and losers across the entire digital asset world—from crypto platforms and banks to fintech firms and software companies being impacted by blockchain and AI trends.

**Galaxy’s Bigger Plans: Tokenized Credit and Blockchain Finance**

Galaxy has come a long way since Novogratz first started it as a pure hedge fund nearly a decade ago. Now it’s a full-service digital finance firm involved in crypto investing, trading, and asset management. Last year alone, Galaxy reported $505 million in profits in just one quarter.

Alongside the new hedge fund, Galaxy is also making moves in blockchain-based credit markets. The company recently completed a $75 million deal for its first tokenized collateralized loan obligation (CLO), which lets traditional credit investors access private loans using blockchain tech.

A major portion of that deal—about $50 million—came from Grove Finance, showing that institutional players are becoming more interested in blockchain-based financial products. This move fits into Galaxy’s broader strategy of combining old-school finance with new decentralized tools.

**Why This Matters for Institutional Crypto Growth**

Galaxy’s launch of this new hedge fund shows that large investors still believe in crypto—even when prices are down. Hedge fund strategies like this one, which can profit in both directions, are appealing to institutions looking for smart ways to manage risk while gaining exposure to digital assets.

For the broader market, this launch highlights how professional investors are developing more advanced ways to invest in crypto. If Galaxy’s fund does well during these volatile times, it could help convince more institutions to get involved in digital assets—and support the continued growth of crypto as a serious asset class.

In short, Galaxy is using today’s uncertain market conditions as an opportunity to introduce a more adaptable crypto hedge fund while expanding into tokenized finance—setting itself up for success in the next wave of digital finance innovation.