1 August 2026
Galaxy Digital Raises $32 Million for Ethereum Funds
Since their February launch, Novogratz's Galaxy Digital has raised over $32 million for Ethereum funds as per the documents filed with the U.S. Securities and Exchange Commission.
Galaxy Digital is a cryptocurrency asset management firm founded by Mike Novogratz - a bitcoin bull. In 2019, Galaxy had created similar Bitcoin funds for individual and institutional investors.
Based on CoinDesk reports, the Galaxy Institutional Ethereum Fund, LP, incorporated in Delaware, reported $22,031,077 in investments from 3 investors. Another version of the fund incorporated in the Cayman Islands reported $10,100,000 from 2 investors.
These funds will allow businesses to invest in Ethereum without buying it. However, the investors may face unstable market risk, but Galaxy Digital takes on the risk of handling private keys by partnering with a US-based exchange to take custody of them. For all the troubles, Galaxy collects a fee in the range of 1%.
Grayscale Investments has also gained considerable success with a similar model. It owns 3% of all Bitcoin in circulation and ~ 2.7% of all Ethereum.
Galaxy's main reason to launch these funds is to capitalize on the rising appeal of decentralized finance (DeFi) protocols, allowing people to lend, borrow, and swap assets without the need of a bank. The Majority DeFi protocols are built on the Ethereum blockchain, supporting that network's viability and the ETH tokens used to pay transaction fees.
At the time of writing, Ethereum was around $1540, which has increased by over 63% since the start of the year. The funds revealed at the end of January made their first sale on February 19. This US-based fund requires a minimum investment of $250,000, while the Cayman fund requires an entry fee of $100,000.
A separate investment vehicle for accredited investors- the Galaxy Ethereum Fund has a lower entry barrier with a minimum investment of at least $25,000. That fund has yet to file a Form D with the SEC but has 15 days from the first sale date.
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