Galaxy Crypto Fund Targets Risk-Conscious Institutional Investors

Galaxy Digital is said to be launching a new $100 million crypto hedge fund. The fund will offer institutional investors a balanced way to gain exposure to the crypto market.

The company said that the fund will invest up to 30% directly in cryptocurrencies. The remaining part of it will go into crypto-related stocks, including mining firms and crypto exchange companies.

🚨BREAKING: Mike Novogratz’s Galaxy to launch $100M crypto hedge fund.

The $17B asset manager says the fund will invest up to 30% in crypto and the rest in crypto-linked stocks. pic.twitter.com/CgXMw3wMMv

— Coin Bureau (@coinbureau) January 21, 2026

A Balanced Approach to Crypto Investing

Galaxy designed the fund to reduce the risk while keeping exposure to crypto growth. By limiting direct crypto holdings, the firm aims to lower volatility.

The rest of the portfolio will focus on listed companies that benefit from the crypto ecosystem. These include mining firms, infrastructure providers and exchange operators.

Furthermore, this structure allows investors to gain indirect exposure without holding only digital assets. Many institutions prefer this approach better because of risk controls and regulatory concerns.

Targeting Institutional Investors

Galaxy launched the fund for institutions looking for proper exposure instead of just risky bets. The firm believes that hybrid products look good to investors who are careful about crypto markets.

Moreover, crypto prices posted strong gains in 2025. However, volatility is still a concern for pension funds, family offices and large asset managers.

By mixing crypto and equities, Galaxy aims to offer smoother returns while staying linked to digital asset growth.

Galaxy’s Growth in Digital Assets

Mike Novogratz founded Galaxy Digital in 2018. Since then, the firm has become one of the biggest players in the digital asset space and manages $17 billion in assets. The company also offers services across trading, asset management and venture investments.

The new hedge fund expands Galaxy’s strategy of building products that connect traditional finance with crypto markets. It also shows how firms are adapting to investor demand for controlled exposure.

Market Reaction and Industry Impact

The announcement got a lot of positive reactions online. While many users pointed out that even indirect investments still support the crypto ecosystem.

Some observers said that the 30% cap shows continued caution among institutions. Full crypto exposure is still a step a lot of investors are not ready to take.

Still, analysts say that funds like this could get more capital into the market over time. As comfort grows, institutions may increase allocations in future products.

Galaxy’s latest move highlights a key trend of how crypto investing is becoming more structured and accessible to the traditional investors.