New Galaxy fund targets digital asset markets with risk-adjusted strategies

Galaxy Digital has launched the Galaxy Absolute Return Fund, an actively managed investment vehicle designed to provide exposure to the digital asset ecosystem and adjacent disruptive technologies.

The fund aims to generate equity-like returns while avoiding direct investments in crypto tokens.

Its multi-asset strategy includes both directional and non-directional positions, investing in publicly traded equities, ETFs, derivatives, and fixed-income instruments. 

By capitalizing on inefficiencies in digital asset markets, the fund seeks to deliver strong performance while maintaining a low correlation to Bitcoin (BTC) and traditional indices like the S&P 500.

Risk adjustments

According to Galaxy, the fund will employ a risk-adjusted approach, utilizing long and short positions to hedge against volatility. It also benefits from Galaxy’s extensive research and risk management infrastructure.

All assets in the fund are traded on regulated exchanges and custodied with traditional financial institutions, ensuring compliance with established financial safeguards.

The fund is led by Christopher Rhine, CFA, Galaxy’s Head of Liquid Active Strategies. Rhine brings over two decades of experience in asset management, having previously held senior investment roles at Cohen & Steers and BlackRock.