Novogratz’s Galaxy to launch $100mn crypto hedge fund

Billionaire’s firm plans portfolio to profit from rising and falling prices, following sharp sell-off in digital assets sector.

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Galaxy, which oversees $17bn worth of digital assets, said the new fund would launch in the first quarter of this year and be able to bet on rising and falling prices. It will invest up to 30 per cent of its assets in crypto tokens and the rest in financial services stocks that it believes will be affected by changes in digital asset technologies and laws. It has received $100mn in investment from family offices, high-net-worth investors and some larger institutions, according to people familiar with the matter, but may launch with more commitments. Galaxy said it was making a seed investment in the fund but declined to say how much.

The price of bitcoin has dropped 5 per cent this week and is trading at about $90,000 after Trump threatened to slap tariffs on European countries that did not support his seizure of Greenland.