Mike Novogratz’s digital asset company Galaxy is preparing to launch a $100 million hedge fund that aims to capitalize on rising and falling crypto prices.

The fund is scheduled to launch in the first quarter and will be structured to take long and short positions in traditional equities linked to digital assets and financial infrastructure, the Financial Times reported. Reported On Wednesday

According to the report, 30 percent of the fund’s capital will be allocated directly to crypto tokens, with the remainder deployed in financial services stocks expected to be affected by digital asset regulation, blockchain adoption and technological change.

The fund has already secured $100 million in commitments from select family offices, high net worth individuals and institutional investors, though the company may open up the strategy with additional capital. Galaxy confirmed to the FT that it would make the seed investment, but declined to disclose the amount.

Related: Wealth transfer could boost crypto adoption among younger investors: Galaxy executive

The “only” phase of crypto is coming to an end

Joe Armau, who will lead the new fund, said the market is entering a different phase. “The ‘only up’ part of this cycle is likely coming to an end,” he told the outlet, maintaining a positive outlook on major assets including Ethereum (ETH) and Solana (SOL). Armau added that Bitcoin (BTC) remains relevant in an environment shaped by US Federal Reserve rate cuts, provided that equities and gold remain resilient.

Beyond crypto-local firms, Galaxy is looking at traditional players as well. Armau cited sales in payments and data companies such as Fisero, arguing that changes in artificial intelligence, blockchain adoption and advances in financial services are driving price changes.

The move reverses the recent pullback in the cryptocurrency market. Bitcoin has fallen nearly 30 percent from its October peak and is trading near $90,000.

In September, Galaxy bought Solana for about $306 million, bringing the total purchase price to more than $1.5 billion.

QuintalGraph reached out to Galaxy for comment but did not receive a response by publication.

Related: Galaxy says the Senate crypto bill risks expanding Treasury surveillance authority

Galaxy Digital Closes First Tokenized CLO on Avalanche

Last week, Galaxy completed its first tokenized collateralized loan obligation (CLO), marking a step toward bringing private credit markets on the blockchain rails. The deal, called Galaxy CLO 2025-1, was issued on Avalanche and has funded approximately $75 million in loans to date, including an allocation of $50 million from Gru, an institutional credit protocol within the Sky ecosystem.