Galaxy launches $100 million hedge fund, cryptocurrency market enters a two-way investment era

Source: TokenPost Original Title: Galaxy Launches $100 Million Long-Short Hedge Fund… Targeting Bitcoin, Ethereum, and Traditional Stocks Original Link: https://www.tokenpost.kr/news/cryptocurrency/325273

Galaxy Launches $100 Million Hedge Fund, Deploying Dual Strategies in Crypto Assets and Traditional Stocks

American digital asset management firm Galaxy announced the launch of a new hedge fund with a scale of $100 million (approximately 14.67 billion yuan) in the first quarter of this year. The fund features a “long” (buy) and “short” (sell) dual investment strategy, simultaneously setting long and short positions on cryptocurrencies such as Bitcoin, Ethereum, Solana, and stocks of traditional financial companies related to blockchain infrastructure.

Galaxy has confirmed raising $100 million from family offices, high-net-worth investors, and some institutional investors, with plans for additional fundraising in the future. The fund intends to invest up to 30% of its total assets directly in cryptocurrencies, with the remaining funds allocated to financial service stocks influenced by digital asset regulation, blockchain adoption, and technological changes.

Joe Armao, the fund manager, stated: “The ‘only rising’ phase in this market cycle is coming to an end. While we remain optimistic about major assets like Ethereum and Solana, the Federal Reserve’s interest rate policies and the resilience of traditional asset markets will determine Bitcoin’s significance.”

U.S. Government Advances Cryptocurrency Legislation

The U.S. government has reignited discussions on cryptocurrency legislation. Patrick Witt, head of the digital assets advisory committee for President Trump’s campaign team, said: “The cryptocurrency market structure bill will inevitably pass; it’s just a matter of time.”

Witt emphasized, “It’s unrealistic for a multi-trillion-dollar industry to operate without an overarching regulatory framework. Achieving 60 votes in the Senate will require compromises. We should push for feasible solutions rather than waiting for a perfect bill.”

Witt specifically pointed out, “We should seize the current opportunity with a pro-cryptocurrency president and a Republican-controlled Congress to push the bill through.” He warned that if led by Democrats, the bill might be overly restrictive regarding asset issuance and application.

However, the bill’s overly restrictive clauses on stablecoins and decentralized finance (DeFi) are facing opposition from major lobbying groups, including leading exchanges.

U.S. CFTC Expands Crypto Expertise

The U.S. Commodity Futures Trading Commission (CFTC) is also expanding its talent pool for digital asset regulation. Chairman Michael Selig announced the hiring of Michael Passalacqua, an experienced professional in blockchain and cryptocurrency litigation, as an advisor.

Passalacqua previously worked at the international law firm Simpson Thacher & Bartlett, engaging in multiple blockchain regulatory interpretations. He also served as legal head at a crypto asset management company. Notably, he co-drafted a petition to the U.S. Securities and Exchange Commission (SEC) requesting recognition of “state trust companies” as crypto custody institutions, which the SEC later chose not to act upon.

Chairman Selig also mentioned that former Treasury Department official Cal Mitchell has joined the advisory team. He indicated that the CFTC is preparing for a significant expansion of its future digital asset oversight responsibilities, restructuring itself into a “future-oriented” framework. Currently, there are legislative bills pending in the Senate proposing to grant the CFTC oversight of the digital asset market.

As the cryptocurrency market gradually integrates into the regulatory framework, relevant participants are strengthening their regulatory response systems. Galaxy’s hedge fund strategy and the CFTC’s personnel adjustments indicate that the market is moving beyond short-term price fluctuations toward long-term institutionalization.