Galaxy to launch $100M hedge fund to bet on rising, falling crypto prices

Galaxy Digital, the financial services and investment management firm specializing in digital assets, has announced the launch of a new $100 million hedge fund dedicated to exploiting market volatility through both long and short positions. This strategic offering marks a significant expansion of Galaxy’s institutional product suite, moving beyond standard long-only vehicles typically dominating the crypto investment landscape.

The fund’s primary strategy will be a multi-directional approach, allowing it to bet on rising crypto prices (long) while simultaneously establishing positions to profit from declines (short). This structure is designed to generate absolute returns, or alpha, regardless of the overall market trend, a key characteristic sought after by institutional investors seeking risk-adjusted exposure to the volatile digital asset sector.

Fund managers will utilize a range of instruments, including futures, options, swaps, and perpetual contracts, to execute strategies such as relative value arbitrage and systematic directional trading. The launch of a substantial, short-capable fund underscores the increasing maturity of the cryptocurrency market, where deep liquidity and regulatory clarity are now sufficient to support complex hedging and leveraging strategies previously confined mainly to traditional finance.

Industry analysts view Galaxy’s move as a strong indicator that institutional demand for sophisticated risk management tools in crypto is growing rapidly. The $100 million seed capital positions the fund as a major player in the emerging space of crypto-native hedge fund strategies.

Source: Galaxy to launch $100M hedge fund to bet on rising, falling crypto prices