Galaxy Launches $100M Crypto Hedge Fund Amid Bitcoin Downturn, Ticker: GLXY

Galaxy, the digital assets firm led by billionaire Mike Novogratz, is launching a $100 million hedge fund in Q1 2026 that will take both long and short positions across crypto tokens and financial services stocks. The move comes as Bitcoin fell to $88,375 on January 21, down 7.1% over the past week, amid geopolitical tensions and shifting market sentiment. The fund will allocate up to 30% of assets to crypto tokens, including stablecoins and tokenized real-world assets, while the rest will target financial firms impacted by blockchain adoption. It has secured $100 million from family offices and institutional investors, with additional commitments expected. Joe Armao, fund head, said the “up only” phase of the current cycle may be ending but remains bullish on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Bitcoin’s decline followed Trump’s threat of 10% tariffs on eight European nations, escalating to 25% by June 1, prompting EU retaliation threats. Prediction markets now show a 70% probability Bitcoin will fall to $69,000 before reaching $100,000. Despite this, corporate buyers like Michael Saylor’s MicroStrategy continue accumulating, purchasing 22,300 BTC for $2.1 billion on January 21.