Crypto asset firm Galaxy and Ethereum-focused Sharplink have announced plans to launch a new private fund aimed at leveraging Ether holdings through decentralized finance (DeFi) strategies. The fund reflects a growing appetite among institutional investors to generate on-chain returns from crypto assets and signals a move by institutions to diversify their Ether portfolios across multiple revenue streams.
Fund structure and objectives
The Galaxy Sharplink Onchain Yield Fund is set to go live in the coming weeks. According to company statements, the fund’s initial size will reach $125 million, with $100 million contributed in staked Ether from Sharplink and $25 million supplied by Galaxy. Galaxy will take the lead in fund management, overseeing all related operations.
The pooled capital will be allocated to DeFi liquidity protocols and various on-chain yield opportunities. The dual objective is to generate additional returns while allowing Sharplink to maintain its long-term Ether position. As one of the largest institutional holders on the Ethereum network, Sharplink currently holds around 868,000 Ether on its balance sheet.
During the market peak in November, the value of Sharplink’s Ether holdings nearly reached $4 billion. The launch of this new fund highlights that, despite volatility in crypto markets, institutional interest in Ether-based strategies and DeFi products remains robust.
Mike Novogratz, CEO of Galaxy, noted that the fund was created in response to growing demand from institutional investors for products that replicate the risk and yield management tools found in traditional finance, emphasizing that blockchain-based investment alternatives are rapidly gaining attention.
Sharplink’s financial results and ETH market fluctuations
Sharplink reported a significant loss in the first quarter of 2026 due to declines in Ether prices. The company posted a net loss of $685.6 million for the quarter, equaling a loss of $3.25 per share. Most of this loss—$506.7 million—was attributed to unrealized losses from a drop in the value of Ether assets on its balance sheet.
After reaching nearly $3,354 in mid-January, Ether’s price fell to $2,104 by the end of the quarter, with the latest trading price hovering around $2,339. According to CryptoAppsy data, this significant depreciation directly impacted the financials of institutional investors.
Despite these setbacks, Sharplink saw operational revenues jump sharply. Quarterly revenues soared from $700,000 a year earlier to $12.1 million. Sharplink has also earned about 18,800 ETH in staking rewards since launching its Ether treasury strategy in June 2025.
As of March 31, 2026, Sharplink reported $16.9 million in cash assets on its balance sheet. The company’s financial performance stands as a striking example of how firms with substantial crypto holdings can be directly exposed to market volatility.
Institutional investors and market turbulence
Financial results reported by firms holding crypto assets highlight how volatility can have both positive and negative effects. For companies with significant positions in Ether and Bitcoin, swings in market prices can translate into substantial periodic gains or losses.
Industry analysts predict that such price fluctuations, which contribute to large swings in company balance sheets, may prompt firms deploying crypto treasury strategies to pursue mergers and acquisitions in the near future.
