Galaxy and Sharplink Launch $125M Fund to Put Institutional ETH to Work Onchain

In a major partnership, Galaxy Digital and Sharplink have launched a new $125 million fund that will deploy capital across onchain yield strategies and selected crypto investments.

As part of the partnership, Galaxy Sharplink Onchain Yield Fund has started with $125 million in committed capital. Sharplink is providing $100 million from its staked Ethereum treasury, while Galaxy is contributing another $25 million.

Galaxy will manage the fund and oversee its investment strategy.

The launch comes as companies with large crypto treasuries look beyond simply holding digital assets. Sharplink, which has built its strategy around Ethereum, is now looking to generate additional returns from its ETH holdings through onchain markets.

What Does the Partnership Mean for Sharplink’s ETH Treasury

Sharplink has positioned Ethereum as a productive treasury asset rather than simply an asset to accumulate.

The company has already used staking as part of its ETH treasury strategy. The new fund takes that approach further by allowing capital to be deployed into decentralized finance and other onchain opportunities.

Joseph Chalom, CEO of Sharplink, said the fund represents the next step in the company’s ETH treasury strategy. He said the goal is to make its ETH more productive while maintaining an institutional approach to allocating capital.

The fund will also invest in emerging crypto protocols and projects. Sharplink believes this could provide capital to projects that need early liquidity and activity to grow.

Galaxy expands institutional onchain strategy

For Galaxy, the fund adds another product to its institutional digital asset business.

Galaxy said its investment process will be supported by its experience in digital asset markets, along with protocol research, due diligence and risk controls.

Galaxy CEO Mike Novogratz said the launch reflects a shift in institutional crypto adoption, with investors moving from passive ownership toward active participation in blockchain-based markets.

Steve Kurz, Galaxy’s Global Co-Head of Digital Assets, described the fund as an institutional-grade onchain strategy for the firm’s asset management platform.

The move also highlights how ETH treasury strategies are evolving. Instead of keeping ETH idle or limiting returns to staking, institutional holders are increasingly looking at ways to deploy their assets across the broader onchain economy.

With $125 million committed at launch, the Galaxy-Sharplink fund could become an important test of whether large corporate crypto treasuries can generate additional returns through institutional DeFi strategies while maintaining tighter risk controls.