Mike Novogratz’s firm will pick protocols and size exposures while Sharplink keeps its core staked ETH position intact.
Galaxy Digital and Sharplink on Monday announced plans to launch a $125 million institutional onchain yield fund that will deploy capital across DeFi liquidity protocols and other onchain yield-generating strategies.
The two Nasdaq-listed firms have entered into an agreement to form the Galaxy Sharplink Onchain Yield Fund, LP, which is expected to launch in the coming weeks. Of the $125 million in commitments, $100 million will come from Sharplink’s staked Ethereum treasury, with the remaining $25 million from Galaxy, which will act as investment manager.
Sharplink, which separately disclosed it now holds 872,984 ETH in its treasury, has emerged over the past year as one of the largest corporate holders of Ether after pivoting from online sports betting marketing into an ETH treasury vehicle under chairman and Consensys founder Joseph Lubin.
The fund is designed to allow Sharplink to preserve its core staked ETH exposure while allocating balance-sheet capital to actively managed onchain strategies, according to the announcement. Galaxy will handle protocol selection, exposure sizing, and ongoing monitoring through the same institutional research and risk framework applied across its trading, lending, and asset management businesses.
“Institutional capital is moving onchain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets,” said Mike Novogratz, founder and CEO of Galaxy.
Sharplink CEO Joseph Chalom, a 20-year BlackRock veteran who previously led the asset manager’s digital assets strategy, framed the fund as the “clearest expression” of the company’s plan to make its ETH holdings as productive as possible while maintaining institutional risk standards.
Galaxy was among the original participants in Sharplink’s $425 million PIPE in May 2025 that seeded the ETH accumulation strategy, alongside Pantera Capital, ParaFi, and Electric Capital.
The new fund also fits with Galaxy’s broader push into institutional staking and onchain plumbing. The firm acquired Alluvial Finance in December 2025 to take over development of Liquid Collective, the enterprise liquid staking protocol used by exchanges, custodians, and asset managers.
The partnership also marks a notable shift for Galaxy, which had previously warned in a July 2025 research note that the proliferation of Digital Asset Treasury Companies pursuing identical raise-and-buy strategies could leave the market “structurally fragile.” The Sharplink tie-up effectively offers a template for the next phase: putting balance-sheet crypto to work onchain rather than letting it sit idle.
This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.
