Galaxy Digital Plans Crypto Hedge Fund Rollout

Group 1 - Galaxy Digital is planning to launch a new hedge fund focused on trading digital assets and related stocks, with an initial size of $100 million set to start in the first quarter of this year [1][2] - The fund's strategy allows for investments in both rising and falling market conditions, allocating approximately 30% of the fund into crypto tokens such as Bitcoin, Ether, and Solana, while the remaining capital will be invested in financial services stocks related to digital asset technology and policy shifts [2] - The fund has secured $100 million from family offices, wealthy individuals, and a small group of larger firms, with Galaxy also making a seed investment in the fund [2] Group 2 - Galaxy Digital, founded in 2017, operates crypto-focused banking and asset management units and is the 17th largest corporate holder of Bitcoin, holding 6,894 BTC [3] - The launch of the new fund coincides with a downturn in the broader crypto market, where Bitcoin has dropped about 29% from its October peak of $126,198 [4] - Currently, Bitcoin is trading below the key $90,000 level, down approximately 5.7% over the past week, resulting in a loss of $160 billion in market capitalization, while Galaxy aims to target volatility rather than waiting for a price rebound [5]