Galaxy Launches $100M Crypto Hedge Fund Amid Bitcoin Slide

Galaxy Management Co. CEO Mike Novogratz predicts the speculative phase of cryptocurrency is ending, with the sector shifting toward real-world assets and lower returns. He drew parallels between the November 2022 FTX collapse and the October 2025 $19B derivatives crash, noting narratives in crypto take time to rebuild. The firm is launching a $100 million crypto hedge fund by early March, with up to 30% of assets allocated to crypto tokens and the rest to financial services stocks expected to be impacted by digital asset technologies and regulations. Bitcoin fell 47% from its October all-time high above $126,000 to $66,551, near $60,000 last week, down 10% in the past week; Ethereum and top altcoins including XRP and Solana declined similarly. Tokenization is expected to drive a shift toward different return profiles for tokenized stocks versus traditional crypto trading.