Galaxy Digital raises $100 million for new crypto fund ahead of 2026 launch

Galaxy Digital, the cryptocurrency-focused investment firm led by billionaire Mike Novogratz, has secured $100 million for a new multi-strategy crypto fund, underscoring renewed institutional and high-net-worth interest in digital assets despite ongoing market volatility.

Galaxy Digital, the cryptocurrency and digital assets firm founded and led by U.S. billionaire investor Mike Novogratz, has raised $100 million in commitments for a new investment fund slated to launch in the first quarter of 2026, according to a report by the Financial Times. The fund has attracted capital from family offices, high net-worth individuals, and select institutional investors, signalling cautious but growing confidence in the long-term prospects of digital assets.

The new fund is expected to adopt a flexible, multi-strategy approach that allows it to take positions on both rising and falling cryptocurrency prices. This long-short capability is designed to help navigate the sharp price swings and cyclical downturns that continue to characterise crypto markets.

People familiar with the matter said Galaxy Digital has indicated that the fund could launch with more than the initially raised $100 million, as discussions with additional investors are ongoing. The firm is reportedly confident that final commitments may exceed the current figure before the official launch early next year.

Diversified Investment Strategy

According to the report, the fund’s investment mandate will allow up to 30% of assets to be allocated directly to cryptocurrency tokens, including major digital assets and selected altcoins. The remaining portion of the portfolio will be invested in traditional financial services stocks, particularly companies that are closely linked to the broader digital assets ecosystem.

These may include crypto exchanges, digital asset custodians, payment firms, blockchain infrastructure providers, and financial technology companies that benefit from increased institutional adoption of crypto-related products and services.

This hybrid strategy reflects a growing trend among professional investors who are seeking exposure to the crypto economy while mitigating some of the risks associated with direct token investments. By combining digital assets with publicly listed equities, the fund aims to offer a more balanced risk-return profile.

Renewed Institutional Interest

The successful fundraising comes at a time when the cryptocurrency industry is attempting to recover from a prolonged period of volatility, regulatory uncertainty, and investor skepticism. While crypto prices have rebounded from previous lows, markets remain sensitive to global macroeconomic conditions, interest rate expectations, and geopolitical developments.

Despite these challenges, the participation of family offices and high net-worth individuals suggests that long-term investors continue to see value in digital assets as part of a diversified portfolio. Industry observers note that these investor groups often have greater flexibility and longer investment horizons than traditional institutions, making them early movers during periods of market transition.

The inclusion of larger institutional investors, even in limited numbers, is also notable. It reflects a gradual shift in sentiment as regulatory clarity improves in certain jurisdictions and as crypto-related infrastructure becomes more mature and compliant with traditional financial standards.

Galaxy Digital’s Expanding Footprint

Galaxy Digital has established itself as one of the most prominent players in the digital assets space, offering services across trading, asset management, investment banking, mining, and blockchain technology. The firm has been actively expanding its asset management arm, viewing it as a key growth driver amid increasing demand for professionally managed crypto exposure.

Mike Novogratz, a former hedge fund manager and one of the most vocal proponents of cryptocurrency adoption, has repeatedly emphasised the importance of institutional participation in legitimising and stabilising the digital assets market. He has also highlighted the role of regulated investment vehicles in attracting conservative capital that may be hesitant to invest directly in tokens.

The launch of the new fund aligns with Galaxy Digital’s broader strategy of catering to sophisticated investors seeking diversified and risk-managed access to crypto markets.

Ability to Navigate Volatile Markets

One of the defining features of the new fund is its ability to bet on both upward and downward price movements. This flexibility is particularly important in crypto markets, where sharp corrections and rapid rallies can occur within short timeframes.

By employing hedging strategies and short positions, the fund aims to reduce downside risk during market sell-offs while capitalising on periods of recovery and growth. Industry analysts note that such strategies are increasingly attractive to investors who are wary of the “buy-and-hold” volatility historically associated with cryptocurrencies.

The approach also reflects a broader maturation of the crypto investment landscape, where sophisticated trading strategies once limited to traditional hedge funds are becoming more common in digital asset portfolios.

Market Context and Timing

The planned launch in early 2026 comes against a backdrop of mixed signals for crypto markets. On one hand, increased adoption, technological innovation, and regulatory engagement continue to support long-term growth narratives. On the other, concerns around global liquidity conditions, regulatory enforcement actions, and geopolitical risks continue to weigh on investor sentiment.

Recent months have seen renewed debate around the role of cryptocurrencies in diversified portfolios, particularly as correlations with traditional risk assets fluctuate. Galaxy Digital’s new fund appears designed to operate within this uncertain environment, offering flexibility rather than directional exposure alone.

Looking Ahead

While Galaxy Digital has not publicly commented on the specific details of the fund, market participants will be watching closely to see how the strategy performs once launched. The ability to attract additional capital before the first quarter of 2026 will be seen as a key indicator of broader investor appetite for crypto-focused funds.

The successful $100 million raise suggests that, despite lingering volatility, digital assets remain firmly on the radar of sophisticated investors. As regulatory frameworks evolve and market infrastructure continues to improve, professionally managed funds like Galaxy Digital’s are likely to play an increasingly important role in shaping the next phase of crypto market development.

For Galaxy Digital, the new fund represents both a vote of confidence from investors and a strategic bet on the long-term integration of cryptocurrencies into the global financial system.