Galaxy, Sharplink Launch $125M Institutional DeFi Fund Using ETH Treasury

Digital asset company Galaxy and Ethereum treasury platform Sharplink will launch a private fund that will invest Ether in decentralized finance (DeFi) strategies, signaling growing institutional interest in earning onchain yield from crypto holdings.

The proposed fund, called the Galaxy Sharplink Onchain Yield Fund, is expected to launch in the coming weeks with $125 million in initial commitments, the companies said Monday.

Sharplink plans to contribute $100 million from its staked Ether (ETH) treasury, while Galaxy will commit $25 million and serve as the fund’s manager.

The fund will allocate capital to DeFi liquidity protocols and other onchain yield opportunities, with the goal of generating additional returns while allowing Sharplink to maintain its long-term exposure to Ether.

Galaxy CEO Mike Novogratz said the structure reflects growing institutional demand for blockchain-based investment products that offer yield and risk management tools similar to those used in traditional finance.

The value of Sharplink’s Ether portfolio. Source: CoinGecko

Sharplink is one of the largest corporate holders of Ether, with more than 868,000 ETH on its balance sheet. At October market highs, those holdings were valued at nearly $4 billion.

Related: Crypto Biz: Wall Street wants more than just Bitcoin

Sharplink posts nearly $686 million Q1 loss as ETH price declines

Sharplink has continued to expand its Ethereum treasury strategy despite a sharp first-quarter loss driven by Ether’s price decline.

The company on Monday reported a net loss of $685.6 million, or $3.25 per diluted share, primarily due to non-cash accounting charges related to the drop in ETH prices during the quarter. Of that total, $506.7 million was attributed to unrealized losses on its Ether holdings.

Ether fell from a mid-January high of about $3,354 to $2,104 on March 31, according to CoinMarketCap data. It was last trading hands on Monday at about $2,339.

Revenue in the quarter rose to $12.1 million from $700,000 a year earlier, reflecting growth in the company’s operating business.

Since launching its Ether treasury strategy in June 2025, Sharplink has earned approximately 18,800 ETH in cumulative staking rewards. The company ended the first quarter with $16.9 million in cash.

Sharplink’s balance sheet as of March 31, 2026. Source: Sharplink

The results underscore the volatility associated with crypto treasury strategies, particularly for companies that accumulated large positions over the past year. Similar pressures have affected Bitcoin treasury companies, where earnings can swing sharply with underlying asset prices.

Related: Crypto treasury companies likely to consolidate in 2026: Crypto exec