Galaxy Digital, Sharplink Launch $125M Institutional DeFi Fund
Galaxy Digital and Sharplink agreed to form a $125 million institutional DeFi fund; Sharplink will commit $100 million and Galaxy $25 million to ETH-denominated on-chain strategies.
Galaxy Digital and Sharplink entered a nonbinding agreement to create a $125 million institutional DeFi fund. Sharplink will commit $100 million and Galaxy $25 million to deploy ETH-denominated on-chain yield and liquidity strategies. Galaxy will operate the fund and manage day-to-day deployment and risk controls.
The fund is intended to put part of Sharplink’s treasury to work by allocating capital across on-chain liquidity strategies and yield-generating protocols. Sharplink said the commitments reflect a long-term alignment and will focus on opportunities that generate ETH-denominated yield while preserving core staked positions. The agreement is nonbinding and the partners did not disclose specific strategy details, timelines or risk frameworks.
Sharplink holds about 870,000 ETH, making it one of the largest corporate Ethereum treasuries. The company reported 16,436 ETH in staking rewards and $12.1 million in total revenue in the first quarter of 2026, and disclosed unrealized losses of more than $685 million due to market movements. Matthew Sheffield, Sharplink’s chief investment officer, stated, “We intend to preserve our core staked Ethereum exposure while generating excess returns that accrue back to our shareholders.”
Galaxy will manage the $125 million pool and target risk-managed returns tied to Ethereum exposure while supporting early-stage protocols. Mike Novogratz, founder and CEO of Galaxy, said the infrastructure has matured enough for institutional allocators to access yield, liquidity and risk management on-chain with similar rigor to traditional markets.
The fund will allow Sharplink to diversify its permanent capital and seek additional yield on staked and liquid ETH holdings. The partners said the initiative is aimed at providing a managed path for institutional exposure to on-chain markets.
The arrangement remains subject to final agreements and further disclosures. The companies did not provide a launch date or a timeline for capital deployment.
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