First Mover Americas: Galaxy Digital to Raise $100M for New Fund

The latest price moves in crypto markets in context for April 4, 2024.

AccessTimeIconApr 4, 2024 at 12:01 p.m. UTC

This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

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Galaxy Digital’s venture team has long invested its own money in crypto companies. Now, it’s planning to do that with outside investors’ capital, too. The investments giant is putting together a $100 million fund that will invest in early-stage crypto companies, according to an investor email shared with CoinDesk. Galaxy moved its venture capital franchise into its asset management business in 2023. The Galaxy Ventures Fund I fund aims to invest in as many as 30 startups over the next three years, with checks starting at $1 million. It will target financial applications, software infrastructure and protocols built on crypto, the email said. The new fund “will continue the success of our proprietary balance sheet investing but through a direct, institutional-grade fund,” the email said.

The U.S. Securities and Exchange Commission opened the window for comments on three ether (ETH) spot exchange-traded fund (ETF) proposals. The ETF efforts tied to Grayscale Investments, Fidelity and Bitwise will be subject to a three-week comment period, according to notices posted Tuesday by the agency "to solicit comments on the proposed rule change from interested persons." Despite rising expectations after the agency's approval of bitcoin spot ETFs in January, industry analysts have become less optimistic that the regulator will follow suit with products tracking the Ethereum blockchain's token. The commission had been pressured into abandoning its opposition to the bitcoin applications after a key loss in a court dispute with Grayscale, and SEC officials said the resulting approval of bitcoin ETFs doesn't apply to other tokens.

Investment firm VanEck predicts Ethereum layer-2 (L2) networks could be valued at over $1 trillion by 2030 in a base-case scenario but remains “generally bearish” on the long-term prospects of several such networks. The firm evaluated 46 L2 networks across five key areas and predicted “thousands” of rollups will eventually emerge. Arbitrum is currently the biggest ecosystem, with over $18 billion in locked tokens, data shows, capturing the majority of $36 billion locked across 46 networks. VanEck analysts Patrick Bush and Matthew Sigel estimated that Ethereum will eventually capture 60% of the market share across all public blockchains. They modeled their estimate around the volume of assets within the Ethereum ecosystem.

Chart of the Day

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  • The chart shows annualized funding rates, or costs of holding long/short positions in perpetual futures, tied to the top 25 cryptocurrencies by market value.
  • The recent bitcoin price pullback has normalized funding rates to between 10% and 20%.
  • Rates spiked to 100% and above last month, signaling a build-up of excess bullish leverage.
  • Source: Velo Data

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.