Galaxy Digital is stepping in to manage a new $125 million fund that aims to generate yield from digital assets. The Galaxy Sharplink Onchain Yield Fund will pool capital from both firms, with Sharplink contributing $100 million from its staked ETH treasury and Galaxy putting in $25 million.
Who's putting in what
The fund’s structure is straightforward. Sharplink, a crypto firm with a large stash of staked ether, is providing the bulk of the assets. Galaxy Digital is chipping in $25 million and taking on the role of investment manager. That means Galaxy will handle the day-to-day decisions on where to deploy the capital to earn yield onchain.
Why this fund matters
Onchain yield funds have been a growing niche in crypto, especially as institutional players look for ways to earn returns without taking on excessive risk. Staked ETH generates a baseline yield from network validation, but funds like this one may layer on additional strategies — lending, liquidity provision, or other DeFi plays — to boost returns. The $125 million pool isn't enormous by traditional finance standards, but it's a meaningful size for the crypto-native space.
Neither Galaxy nor Sharplink has announced a specific launch date for the fund. The next step will likely be finalizing the legal and operational structure, then opening to outside investors if the fund is structured that way. For now, the focus is on getting the capital deployed and the yield engine running.
