Galaxy Digital, the crypto-focused financial firm led by billionaire Mike Novogratz, is getting ready to launch a brand-new $100 million hedge fund in early 2026. This move shows that big investors like family offices and wealthy individuals are still very interested in managed investment strategies tied to the crypto and fintech sectors.

**New Hedge Fund Targets Crypto Volatility**

The upcoming hedge fund will use a “long-short” strategy. This means it can make money whether prices go up or down by betting on both winners and losers in the market. Around 30% of the fund’s investments will go directly into cryptocurrencies like Bitcoin, Ethereum, and Solana. The other 70% will focus on stocks of traditional financial companies and fintech firms—especially those closely tied to the growth of digital assets, new regulations, and modern payment technologies.

This setup isn’t just about riding the wave of rising crypto prices. Instead, it’s built to benefit from the ups and downs in the market, taking advantage of unpredictable price swings and changes in regulation.

**Experienced Management and Strategic Backing**

The hedge fund will be managed by Joe Armao, a senior portfolio manager at Galaxy Digital. It will also be part of Galaxy’s larger $17 billion digital asset management platform. Galaxy is putting its own money into the fund as well, showing strong belief in the strategy—though the exact amount isn’t being shared yet.

If this fund performs well and market conditions stay favorable, Galaxy may open it up for more investment beyond the initial $100 million.

**Why Now? The Big Picture Behind the Launch**

Galaxy sees several reasons why 2026 could be a good year for this type of active investment approach:

– The U.S. Federal Reserve might cut interest rates, which would make it easier to borrow and invest.
– More big institutions are showing interest in digital assets like crypto.
– Governments are starting to create clearer rules for crypto and fintech companies, which helps reduce uncertainty.

This new hedge fund is part of Galaxy’s bigger plan to grow beyond just crypto. In late 2025, they also invested $460 million into artificial intelligence (AI) data centers, showing they’re focused on merging tech and finance for future opportunities.

**Built for Volatility, Not Just Price Growth**

Instead of hoping that crypto prices will just keep going up, this new fund is designed to make money from the market’s wild swings. That’s a big shift—it shows that major investors are now treating crypto more like a mature market than just a risky bet.

As digital assets and traditional finance continue to blend together, Galaxy is positioning itself to benefit from both sides—especially as more turbulence hits the market. This strategy shows a long-term vision that goes beyond short-term hype.