Galaxy Digital, the crypto-focused financial services firm, has successfully concluded its inaugural venture fund, Galaxy Ventures Fund I LP, raising $175 million in capital. This achievement marks a significant strategic shift for the company, representing its first dedicated vehicle to attract external institutional investment for early-stage blockchain initiatives. The fund is strategically positioned to invest in companies at the nexus of traditional finance and the evolving digital asset economy, with a particular emphasis on stablecoins and decentralized finance (DeFi) applications.
Founded in 2018 by former Goldman Sachs partner Mike Novogratz, Galaxy Digital surpassed its initial $150 million fundraising target for this fund. This move signifies a pivotal departure from its historical approach of investing in crypto startups directly from its balance sheet. The decision to scale its venture arm gained considerable momentum following the 2022 FTX collapse, with the fund’s initial $113 million close taking place in July of the previous year.
Investment Thesis and Early Deployments
According to Mike Giampapa, General Partner at Galaxy Digital, the core investment thesis of the fund revolves around a fundamental industry shift towards “more tangible blockchain use cases” that extend beyond mere speculation. The fund has successfully attracted a diverse range of institutional investors, including prominent family offices and funds that already have existing relationships with Galaxy Digital’s asset management services. Approximately $50 million has already been strategically deployed into promising projects, including Monad, a high-performance trading blockchain network, and Ethena, an innovative crypto-backed stablecoin issuer.
Strategic Alignment and Broader Business Initiatives
While operating as an independent investment vehicle, Galaxy Ventures Fund I LP is strategically integrated into Galaxy Digital’s broader ecosystem. It leverages the firm’s extensive institutional client network to identify and foster new product development opportunities. This synergy aligns with Giampapa’s long-held conviction regarding the inevitable convergence of traditional finance and the burgeoning crypto sector. Galaxy Digital maintains a diverse portfolio of operations, encompassing asset management, trading, cryptocurrency mining, and a growing suite of ETF products, notably a successful Bitcoin ETF launched in collaboration with Invesco, and active consideration for a Solana ETF.
Despite a reported $295 million loss in Q1 2025, the firm continues to manage approximately $7 billion in assets under management (AUM), underscoring its significant presence in the digital asset space. Further reinforcing its institutional trajectory, the U.S. Securities and Exchange Commission recently approved Galaxy Digital’s shares for listing on Nasdaq, a development reported by Fortune, marking another milestone in the company’s expansion.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.