Galaxy and Sharplink Launch $125M Institutional DeFi Yield Fund Backed by ETH
Digital asset firm Galaxy and Ethereum treasury platform Sharplink are launching the Galaxy Sharplink Onchain Yield Fund, a private investment vehicle aimed at generating yield from decentralized finance (DeFi) strategies. The fund expects $125 million in initial commitments, with Sharplink contributing $100 million from its staked Ether treasury and Galaxy committing $25 million while serving as the fund manager. This initiative allows Sharplink to earn additional returns on its crypto holdings without selling its long-term Ether positions, reflecting growing institutional demand for blockchain-based investment products that mimic traditional finance yield structures. Despite reporting a $685.6 million net loss in the first quarter due to unrealized losses from declining ETH prices, Sharplink continues to expand its treasury strategy. The company holds over 868,000 ETH and has accumulated significant staking rewards since adopting this strategy in June 2025. Galaxy CEO Mike Novogratz highlighted that the fund addresses the need for risk management tools and yield opportunities in the crypto sector, signaling a maturing market where institutions seek to optimize capital efficiency through onchain mechanisms.
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Galaxy and Sharplink Launch $125M Institutional DeFi Yield Fund Backed by ETH
Digital asset firm Galaxy and Ethereum treasury platform Sharplink are launching the Galaxy Sharplink Onchain Yield Fund, a private investment vehicle aimed at generating yield from decentralized finance (DeFi) strategies. The fund expects $125 million in initial commitments, with Sharplink contributing $100 million from its staked Ether treasury and Galaxy committing $25 million while serving as the fund manager. This initiative allows Sharplink to earn additional returns on its crypto holdings without selling its long-term Ether positions, reflecting growing institutional demand for blockchain-based investment products that mimic traditional finance yield structures. Despite reporting a $685.6 million net loss in the first quarter due to unrealized losses from declining ETH prices, Sharplink continues to expand its treasury strategy. The company holds over 868,000 ETH and has accumulated significant staking rewards since adopting this strategy in June 2025. Galaxy CEO Mike Novogratz highlighted that the fund addresses the need for risk management tools and yield opportunities in the crypto sector, signaling a maturing market where institutions seek to optimize capital efficiency through onchain mechanisms.
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