Galaxy Digital’s asset management business seems to be heating up after a recent acquisition.
“It’s going to be a diversified asset management platform…the Blackstone of crypto,” Galaxy’s Scott Army said, referring to the $600 billion alternative investment management giant.
On Tuesday, the firm made one of its first steps towards that goal, announcing the launch of its newest fund: a venture fund that will invest $33 million across several venture funds in the cryptocurrency market on behalf of large, institutional investors. The nod to Blackstone makes sense given it offers its clients access to an array of investments solutions, including ways to access a wide-range of underlying hedge funds. Of course, Galaxy is much smaller.
Army’s Vision Hill Group was acquired by Mike Novogratz’s Galaxy Digital earlier this year, forming Galaxy Vision Hill. Galaxy Digital’s asset management arm oversees $1.4 billion, according to a press release. The unit (via Vision Hill) has already offered a hedge fund of funds product. Army said the firm plans to offer an array of funds ranging from actively managed to market neutral, aiming to serve investors across the spectrum of risk appetite.
“There are ultra high net-worth investors to RIAs to family offices participating in this raise,” he said. Franklin Templeton—the mutual fund and exchange-trade fund provider— is one of the firms that Galaxy confirmed on the record has written a check for the new fund.
Franklin Templeton manages more than $1.4 trillion as of 2020.
The firm has deployed capital to CoinFund and Spartan Group, two investment firms that have announced new funds recently. The firm declined to comment on the other funds to which has allocated capital.