Mike Novogratz’s Galaxy to Roll Out $100M Crypto Hedge Fund in Q1 2026

The Financial Times has just reported that Mike Novogratz’s Galaxy Group is ready to launch a $100 million crypto hedge fund in the first quarter of 2026. Led by Joe Armao, the fund is focusing on a “winners and losers” theme in the financial industry. It aims to address the profound changes AI and digital assets are bringing to the cryptocurrency industry.

Founded in 2018, Galaxy Digital is a Toronto-listed (GLXY) digital asset management firm with approximately $17 billion worth of assets under management as of early 2026. The firm positions itself as a bridge between traditional finance and cryptocurrency, focusing on delivering services such as trading, mining, lending, and venture investing.

Offering Crypto Exposure to the Financial Sector

The fund's strategy emphasizes liquidity. It focuses on allocating up to 30% allocation in digital currencies, such as Bitcoin (BTC) and Ethereum (ETH). The remaining 70% in publicly traded stocks are tied to the crypto ecosystem, including tech firms, mining companies, and exchanges. The fund is already backed by family offices, institutions, and high-network clients, with Galaxy Digital also participating in the investment.

This new hedge fund will operate under the firm’s digital asset management division. It reflects Galaxy’s broader strategy to combine crypto investments with equity exposure to financial sectors reshaped by evolving regulations and blockchain technology.