Galaxy Digital plans to launch a $100 million crypto hedge fund in the first quarter of 2026, targeting institutional and wealthy investors seeking hedged exposure to digital assets. The vehicle will use a long short strategy that mixes direct token positions with equity bets on listed financial firms.
Galaxy Digital Unveils Long Short Strategy Across Crypto and Equities
The fund will allocate up to 30 percent of assets directly to cryptocurrencies such as Bitcoin and other liquid tokens. The remaining capital will go into stocks of banks, exchanges, asset managers and payment firms tied to digital asset adoption.
Galaxy intends to profit from both rising and falling markets by taking long and short positions across this combined universe. Executives describe the approach as a way to express views on winners and losers as regulation and technology reshape finance.
This structure differs from earlier Galaxy vehicles that focused mainly on directional crypto exposure. It targets clients who want crypto linked returns but prefer a diversified risk profile across tokens and traditional equities.
Investor Base and Timing in Market Cycle
Galaxy has already secured about $100 million of commitments from family offices, high net worth investors and several institutions. The firm will also seed the fund with its own capital, though it has not disclosed the amount.
The launch comes after a sharp pullback in digital asset prices, including a double digit decline in Bitcoin from its recent peak. Galaxy’s leadership views the correction as an entry point for strategies that can trade volatility rather than rely on a straight bull market.
Galaxy managed roughly $17 billion in digital assets as of late 2025, following a profitable year that included 505 million dollars in third quarter earnings. The new hedge fund extends its product line beyond existing liquid crypto funds and venture vehicles aimed at earlier stage projects.
Positioning for Institutional Demand in 2026
The fund specifically targets risk conscious institutional investors that now face clearer regulations in major jurisdictions. Its blended portfolio is designed to align with internal risk frameworks that limit pure token exposure.
Even if token values continue to fluctuate, Galaxy officials contend that equity investments in companies developing cryptocurrency infrastructure may capture fundamental development. The company may seek more money if performance lives up to expectations, possibly expanding the plan beyond the first $100 million.
READ MORE: Pi Network Price Forms Bullish Patterns After Hitting All-Time Low
