$125 Million DeFi Fund Launched by Galaxy and Sharplink

Galaxy, the New York-based crypto company founded by billionaire Mike Novogratz, has teamed up with Sharplink, a Miami-based Ethereum treasury company, to create a $125 million DeFi fund. The private investment vehicle is expected to launch soon and aims to target higher returns in decentralized finance.

Decentralized finance (DeFi) uses blockchain-based software to deliver lending, trading, and yield products without the need for banks or brokers. Sharplink has a market capitalization of $1.5 billion and ranks as the second-largest Ethereum treasury company, with its $2.1 billion treasury already fully staked.

The new fund will be managed by Galaxy, which will choose protocols, size positions, and manage risk. Sharplink's CEO, Joseph Chalom, believes that DeFi strategies can produce annual returns of 10% or more, but also carry higher risks. He argues that recent turmoil in the sector is not a reason to retreat from DeFi, but rather an opportunity to raise standards.

Chalom notes that those who prioritize security will be the survivors in DeFi and that his company's long-term Ethereum capital combined with Galaxy's expertise in asset management makes for a powerful combination. The new fund is expected to invest in more active DeFi strategies such as lending and providing liquidity.