Galaxy Digital Secures $175 Million for Early-Stage Digital Asset Ventures

Galaxy Digital, a prominent player in the digital asset space, has successfully secured $175 million for its inaugural external venture fund. This fund, which surpasses its initial target of $150 million, is dedicated to early-stage investments in projects that bridge traditional finance with digital assets. The fundraising process, which began in 2024, concluded in mid-2025. The fund focuses on stablecoins, decentralized finance (DeFi), and blockchain-based financial tools, reflecting a shift from speculative blockchain use cases to more tangible applications.

Mike Giampapa, a general partner at Galaxy, emphasized the significance of this venture fund, marking Galaxy's first foray into accepting outside capital. Although the company has previously invested using its own resources, this fund represents a strategic move to leverage external capital. 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.

This move underscores Galaxy Digital's growing influence in the DeFi market, potentially boosting blockchain innovation and investment. Led by CEO Mike Novogratz, a prominent figure in the industry, Galaxy Digital's fund aims to support early-stage blockchain infrastructure projects. The fund strives to drive growth within the DeFi sector. "This fund marks a strategic expansion for Galaxy Digital, enhancing its influence on the DeFi ecosystem and potentially catalyzing growth for supported projects and related on-chain assets."

The response from the industry highlights the importance of institutional backing and its impact on innovation in DeFi. Community enthusiasm reflects broader support for blockchain technology advancements. Market expectations pivot around increased investment in blockchain projects, spearheaded by Galaxy Digital's new fund. This could fuel significant growth and interest in DeFi initiatives. Experts anticipate regulatory or technological changes accompanying this capital influx. Historical trends indicate potential for increased innovation and financial asset diversification within the blockchain space.