$125M DeFi Yield Fund Targeting Institutional Investors Planned by Galaxy and Sharplink Using ETH Holdings
A $125 million private investment vehicle designed to deploy staked ETH into DeFi yield strategies is being established by Galaxy, under Mike Novogratz's leadership, and Sharplink, responding to institutional demand for returns on Ethereum assets.
Galaxy, a prominent digital asset firm, is partnering with Sharplink, an Ethereum treasury management platform, to establish a private investment vehicle focused on deploying Ether into decentralized finance (DeFi) yield-generating strategies, marking another milestone in the growing institutional appetite for onchain returns from cryptocurrency assets.
Set to debut in the upcoming weeks with initial capital commitments totaling $125 million, the Galaxy Sharplink Onchain Yield Fund was announced by both organizations on Monday, according to their joint statement.
According to the announcement, Sharplink will deploy $100 million sourced from its treasury of staked Ether (ETH), with Galaxy providing the remaining $25 million and taking on management responsibilities for the investment vehicle.
Capital from the fund will be directed toward DeFi liquidity protocols alongside other yield-generating opportunities available onchain, aiming to produce enhanced returns while preserving Sharplink's strategic long-term positioning in Ether.
Mike Novogratz, serving as Galaxy CEO, commented that this fund architecture demonstrates the increasing appetite among institutional players for blockchain-powered investment vehicles that deliver yield generation and risk mitigation capabilities comparable to instruments found in conventional financial markets.
Among corporate entities, Sharplink ranks as one of the most significant holders of Ether, maintaining a balance sheet position exceeding 868,000 ETH. During the market peak observed in October, these Ethereum holdings reached a valuation approaching $4 billion.
Sharplink posts nearly $686 million Q1 loss as ETH price declines
Despite recording a substantial first-quarter loss driven by declining Ether valuations, Sharplink has persisted in building out its Ethereum treasury approach.
In Monday's financial disclosure, the company revealed a net loss totaling $685.6 million, representing $3.25 per diluted share, with the bulk of this figure stemming from non-cash accounting adjustments tied to ETH price depreciation throughout the three-month period. Within this total, unrealized losses on the company's Ether position accounted for $506.7 million.
Throughout the quarter, Ether experienced a decline from approximately $3,354 at its mid-January peak to $2,104 by March 31, based on CoinMarketCap tracking data. On Monday, it was changing hands at roughly $2,339.
Quarterly revenue climbed to $12.1 million compared to $700,000 recorded in the same period one year prior, demonstrating expansion in the company's core operational activities.
Following the initiation of its Ether treasury program in June 2025, Sharplink has accumulated roughly 18,800 ETH through cumulative staking rewards. The company concluded the first quarter holding $16.9 million in cash reserves.
These financial outcomes highlight the inherent volatility that accompanies crypto-focused treasury approaches, especially for corporations that built substantial positions throughout the previous year. Comparable market dynamics have impacted companies pursuing Bitcoin treasury strategies, where financial performance can experience dramatic fluctuations tied directly to the price movements of their underlying digital assets.