Galaxy Raises $175M to Fuel Crypto-Finance Crossover

Key Points:

• Galaxy’s $175M fund backs early-stage startups working on stablecoins and decentralized financial tools.
• The fund exceeds targets, attracting institutional investors focused on real-world blockchain use cases.
• Galaxy expands crypto strategy with venture capital, Bitcoin ETF, and new Solana ETF registration.

Galaxy has announced the final close of its first externally raised crypto venture fund. The total reached $175 million, above the original $150 million target. The company began raising capital for the fund in 2024 and completed the process in mid-2025. The new fund will focus on early-stage investments across projects linking traditional finance with digital assets.

Galaxy general partner Mike Giampapa said the goal is to expand support for startups working on stablecoins, decentralized finance, and blockchain-based financial tools. 

“You’re seeing this fundamental shift from more speculative use cases of blockchains to something that’s much more… tangible,” said Giampapa in a recent interview with Fortune.

This venture vehicle marks the company’s first time accepting outside capital. Galaxy has invested in the past using its own balance sheet, but is now anchoring the fund while also serving as both a limited and general partner. The firm announced an initial close of $113 million in July 2024.

Galaxy Targets Early-Stage Startups and Institutional Backing

Giampapa said the decision to raise external capital followed the FTX collapse in 2022. According to him, the post-crisis period saw growing interest in practical blockchain applications. 

“While the industry was getting our feet underneath us again, it became obvious that we wanted to take our venture franchise to the next level,” he said.

Though the names of investors have not been disclosed, Giampapa noted that the fund includes institutional backers such as family offices and fund-of-funds that already work with Galaxy’s asset management division. The fund has already deployed around $50 million into companies like Monad, a trading-focused blockchain, and Ethena, a synthetic dollar protocol offering yield-backed stablecoins.

Giampapa also clarified that Galaxy is not following a corporate venture model. Emphasizing that the fund’s core strategy is centered on returns rather than business synergy, he said,

“We’ve never taken a corporate venture approach.”

Part of a Larger Strategy Across Crypto Services

Founded by Mike Novogratz in 2018, Galaxy has positioned itself at the intersection of traditional finance and crypto. The company operates across multiple areas including asset management, mining, and exchange-traded funds. In May 2025, Galaxy reported managing $7 billion in assets, despite a $295 million net loss in Q1 due to falling crypto prices and reduced mining activity.

The company’s crypto ETF business also continues to expand. In 2024, Galaxy partnered with Invesco to launch a Bitcoin ETF. As CoinCu recently reported, the Invesco Galaxy Solana ETF was registered in Delaware on June 12, 2025, signaling growing institutional interest in Solana’s ecosystem.

Long-Term Thesis: Bridging Traditional and Digital Finance

Giampapa explained that Galaxy’s venture strategy is closely linked with its broader vision. The new fund not only supports early innovation but also provides a way for institutional clients to connect with emerging crypto startups.

“We’ve had this thesis going back pretty much since Galaxy’s inception,” said Giampapa. “We think these two worlds are colliding. We want to invest at the earliest stages.”

Galaxy’s venture team is led by Giampapa and Will Nuelle. Both bring experience from firms such as IVP and Bessemer. As the fund grows, its performance may also become relevant for Galaxy’s public shareholders, offering exposure to early-stage crypto investments through its listing on Nasdaq.