Mike Novogratz’s digital asset firm, Galaxy, is gearing up to introduce a hedge fund valued at $100 million, designed to benefit from both bullish and bearish trends in cryptocurrency. Scheduled to launch in the upcoming quarter, this fund will focus on long and short investments across digital currencies and traditional financial stocks tied to infrastructure. The Financial Times reported that 30% of the fund’s initial capital will be directed towards crypto tokens, while the rest will be invested in financial services stocks that are likely to be affected by evolving digital asset regulations and technology advancements.

The fund secured its initial commitments from family offices and high-net-worth individuals, aiming for further investments as needed. Though Galaxy has confirmed a seed investment, it withheld specific figures.

Transitioning Market Dynamics

According to Joe Armao, the leader of the new fund, the market is shifting away from a phase where prices only rise. He expressed optimism for main cryptocurrencies like Ethereum and Solana while noting Bitcoin’s ongoing relevance amidst potential US Federal Reserve rate cuts, contingent on the resilience of equities and gold.

Aside from crypto-centric companies, Galaxy is also monitoring conventional financial players. Armao pointed out recent sell-offs from companies like Fiserv, emphasizing that changing regulations and advances in AI are reshaping financial service valuations.

This initiative follows a notable downturn in the cryptocurrency market, with Bitcoin dropping approximately 30% from a high in October and currently trading around $90,000.

Earlier in September, Galaxy made headlines by acquiring around $306 million worth of Solana, adding to an impressive buying total exceeding $1.5 billion.

Additionally, Galaxy recently completed its inaugural tokenized collateralized loan obligation on Avalanche, further establishing its foothold within blockchain integrated financial markets.