Galaxy Digital bets both ways with new $100M crypto hedge fund
Mike Novogratz's firm launches fund to profit from crypto volatility as the market enters a new phase beyond simple "up only" strategies.
Scout Team
The market's doing something interesting today. Galaxy Digital just announced they're rolling out a $100 million hedge fund that'll bet on crypto prices going both up AND down. Yeah, you read that right - they're not just hoping for green candles anymore.
This is actually pretty smart timing. We've all seen how the crypto market has matured since the wild days of 2021. Back then, everyone was just buying and holding, waiting for their bags to pump. But here's the thing - that strategy doesn't work so well when Bitcoin's been trading sideways for months or when altcoins keep getting hammered.
Galaxy's new fund won't just target crypto tokens either. They're planning to trade traditional financial stocks too, which makes sense given how intertwined crypto and TradFi have become. Think about it - when MicroStrategy moves, Bitcoin often follows. When the Fed sneezes, crypto catches a cold.
What strikes me is how this signals a shift in how big players view the crypto market. It's not about diamond hands and HODLing forever anymore. Professional traders know that money can be made in both directions, especially in a market as volatile as crypto. Short positions, hedging strategies, market-neutral plays - these are the tools that kept traditional hedge funds profitable for decades.
So while retail traders on Twitter keep posting rocket emojis, the smart money is positioning itself to profit no matter which way the market moves. That's the difference between hoping for moonshots and actually running a sustainable trading operation. Galaxy gets it, and I bet we'll see more firms follow their lead in 2026.