Galaxy Closes $175 Million Crypto Venture Fund, Exceeding Target

Galaxy has successfully closed its first externally raised crypto venture fund, securing $175 million, which surpasses the initial target of $150 million. The fundraising process, which began in 2024, concluded in mid-2025. This fund is dedicated to early-stage investments in projects that bridge traditional finance with digital assets, focusing on stablecoins, decentralized finance, and blockchain-based financial tools.

Mike Giampapa, a general partner at Galaxy, highlighted the shift from speculative blockchain use cases to more tangible applications. This venture fund marks Galaxy's first foray into accepting outside capital, although the company has previously invested using its own resources. Galaxy is both a limited and general partner in this fund, which had an initial close of $113 million in July 2024.

The decision to raise external capital was influenced by the FTX collapse in 2022, which sparked interest in practical blockchain applications. The fund includes institutional backers such as family offices and fund-of-funds that already collaborate with Galaxy’s asset management division. Approximately $50 million has already been deployed into companies like Monad, a trading-focused blockchain, and Ethena, a synthetic dollar protocol offering yield-backed stablecoins.

Galaxy's strategy is centered on returns rather than business synergy, distinguishing it from a corporate venture model. The company, founded by Mike Novogratz in 2018, operates at the intersection of traditional finance and crypto, with services including asset management, mining, and exchange-traded funds. Despite a $295 million net loss in Q1 2025 due to falling crypto prices and reduced mining activity, Galaxy reported managing $7 billion in assets in May 2025.

Galaxy's crypto ETF business continues to expand, with the launch of a Bitcoin ETF in partnership with Invesco in 2024. The Invesco Galaxy Solana ETF was registered in Delaware on June 12, 2025, indicating growing institutional interest in Solana’s ecosystem. Galaxy's venture strategy aligns with its broader vision of bridging traditional and digital finance, providing institutional clients with access to emerging crypto startups.

The venture team, led by Giampapa and Will Nuelle, brings experience from firms such as IVP and Bessemer. As the fund grows, its performance may become relevant for Galaxy’s public shareholders, offering exposure to early-stage crypto investments through its listing on Nasdaq. Galaxy's long-term thesis is that the worlds of traditional and digital finance are converging, and the company aims to invest at the earliest stages of this convergence.