Billionaire Mike Novogratz’s Galaxy Digital will launch a $100 million hedge fund that will invest in crypto tokens and financial services stocks.

The new hedge fund will launch sometime during the first quarter of 2026, a Jan. 21 Financial Times report noted, without specifying an exact date.

Galaxy remains bullish on crypto

According to the report, the hedge fund will invest up to 30% of its capital into various cryptocurrency tokens and the remainder across financial services stocks that it believes are likely to be impacted by shifts in digital asset technologies and regulation.

The hedge fund’s launch comes as Bitcoin has recently dropped over 28% from its all-time high hit in October 2025, but Galaxy Digital remains optimistic on Bitcoin and other major cryptocurrencies such as ETH and Solana, according to Joe Armao, head of the fund.

Armao did not specify which crypto tokens the hedge fund will make investments in, but said the hedge fund hopes to profit from identifying “winning and losing companies.”

Galaxy Digital will make a seed investment in the fund, but the exact nature or size of the allocation was not disclosed.

Sources familiar with the development told FT that the fund has secured investments from a mix of family offices, high-net-worth investors, and some larger institutions, with more commitments expected before launch.

Founded in 2018 by U.S. billionaire Mike Novogratz, Galaxy Digital is a financial services firm focused on the digital asset sector with over $17 billion worth of digital assets under management. Over the years, the company has backed several high-profile crypto startups such as Polygon and Fireblocks through its venture capital arm.

Last year, Galaxy Ventures Fund I LP announced it had raised close to $175 million and $180 million to invest in early-stage companies building infrastructure and financial tools for the crypto economy.

In October, Galaxy Digital expanded its U.S. offerings with the launch of GalaxyOne, a financial application that lets U.S. investors trade cryptocurrencies, access equities, and earn yields on digital and traditional assets.