Galaxy Raises $175 Million Fund to Power the Next Generation of Crypto Infrastructure

Key Insights

• Galaxy's $175M Venture Fund Marks a Bold Bet on the Future of Crypto and Finance

• Galaxy opens doors to external investors

In a major move that signals growing confidence in the crypto industry’s next phase, Galaxy has officially closed a $175 million venture fund. This is a major step by the firm to include outside investors. 

More than just a big number, this fund represents a significant shift in how Galaxy is positioning itself in a rapidly maturing crypto market. 

Galaxy Open Doors to External Investors 

Since its founding in 2018, Galaxy has grown from a startup into one of the most recognized names in the Crypto industry. 

Currently, the firm has touched every aspect of the crypto landscape, spanning everything from asset management to Bitcoin ETFs. But the launch of this new fund, which exceeded its initial $150 million target, shows Galaxy is betting big on the convergence of traditional finance and blockchain.

“We’re seeing crypto evolve from flashy, speculative projects into systems that solve real-world problems,”

said Mike Giampapa, the general partner leading the fund. 

What makes this venture fund particularly interesting is that it’s the first time Galaxy has opened the door to outside capital. Traditionally, it invested off its balance sheet. 

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Now, alongside institutions like family offices and funds of funds, Galaxy itself remains a major backer, acting as both a limited partner and the general partner overseeing the fund.

This shift also gives retail investors a rare path to gain indirect exposure to crypto startups. Since Galaxy is publicly traded, its growing venture arm adds a new layer of potential value for shareholders looking to ride the next wave of blockchain innovation.

Galaxy's Strategic But Independent Move

Unlike many corporations that launch venture arms to support their own ecosystems, Galaxy is staying focused on return, not synergy. That means they’re backing projects that have strong fundamentals, regardless of whether they fit neatly into the company’s other business units.

But that doesn’t mean there’s no overlap. Giampapa notes that the fund still benefits from Galaxy’s broader infrastructure, especially when helping portfolio companies connect with large institutional clients. This blend of independence and strategic advantage gives Galaxy a unique edge.

Even before the fund’s final close, Galaxy was busy deploying capital. Around $50 million has already gone into promising startups like Monad, a trading-centric blockchain project, and Ethena, which is developing a synthetic dollar protocol offering yield-bearing stablecoins — a hot area in the post-FTX, post-Luna era.

The decision to raise outside capital was partly shaped by the fallout of 2022’s crypto crash, including the collapse of FTX. 

While much of the industry was reeling, Giampapa saw something different a quiet revolution, especially around stablecoins and decentralized finance. That “quiet” became the foundation for Galaxy’s renewed venture push.

Path Ahead for Galaxy 

With $7 billion in assets under management and a growing presence in everything from ETFs to mining, Galaxy is clearly not sitting still. 

Despite some setbacks, including a major loss tied to the Luna debacle, it remains one of the few crypto-native firms capable of bridging the divide between Wall Street and Web3.

This $175 million venture fund isn’t just about big checks. It’s a statement: crypto is growing up, and Galaxy wants to be at the center of that evolution.