Mike Novogratz’s Galaxy to Launch $100M Crypto Hedge Fund as Bitcoin Tumbles

Crypto entrepreneur and billionaire Mike Novogratz's steadfast Galaxy is launching a $100 cardinal hedge money successful the archetypal 4th of this twelvemonth that volition instrumentality some agelong and abbreviated positions, arsenic Bitcoin tumbles from its October highest and commercialized tensions rattle crypto markets.

The money volition put up to 30% of its assets successful crypto tokens, and the remainder successful fiscal services stocks that Galaxy believes volition beryllium affected by changes successful integer plus technologies and laws, according to a Financial Times report.

The integer assets infrastructure institution has received $100 cardinal successful concern from household offices, high-net-worth investors, and immoderate larger institutions, the FT reported, though it whitethorn motorboat with much commitments.

Decrypt has reached retired to Galaxy for further remark connected the effect concern amount.

Paul Howard, elder manager astatine crypto trading steadfast Wincent, told Decrypt the fund’s premix of tokens and fiscal services stocks reflects wherever alpha is emerging, with returns driven by “bringing fiscal services on-chain and integer assets into accepted businesses.

He added that backing “a smaller fistful of crypto tokens with demonstrable occurrence and partnerships,” galore tied to real-world usage cases similar stablecoins or tokenized assets, offers investors a much prudent way than a scattershot approach.

The hedge money points to a strategical pivot for Galaxy arsenic volatility returns to integer plus markets.

Bitcoin is presently trading astir $88,375, down 3.1% connected the time and 7.1% implicit the past week, according to CoinGecko data.

Fund caput Joe Armao told the FT that the "'up only' signifier of this rhythm is perchance coming to an end," though helium remains bullish connected Bitcoin and large cryptos similar Ethereum (ETH) and Solana (SOL).

"Bitcoin can't beryllium ignored this twelvemonth successful a backdrop of further [Federal Reserve involvement rate] cuts, assuming equity markets and golden enactment healthy," helium said.

Bitcoin dropped from $95,000 connected Friday aft Trump threatened 10% tariffs connected 8 European countries opposing U.S. power of Greenland, with measures acceptable to instrumentality effect connected February 1 and escalate to 25% by June 1.

Europe moved rapidly to awesome retaliation, with the European Parliament present considering suspending support of the U.S.-EU commercialized woody agreed successful July.

On prediction marketplace Myriad, owned by Decrypt's genitor institution Dastan, sentiment is turning bearish, with users present placing a 70% accidental connected Bitcoin's adjacent determination taking it to $100,000 alternatively than $69,000—down from highs of 84% earlier successful the week.