Digital asset firm Galaxy and Ethereum treasury platform Sharplink will launch a private fund investing in Ethereum allocations within decentralized finance (DeFi) strategies, signaling growing institutional interest in generating on-chain yields from cryptocurrency holdings.
Two companies said on Monday that the proposed fund, named the Galaxy Sharplink Onchain Yield Fund, is expected to launch in the coming weeks with initial committed capital of $125 million.
Sharplink plans to contribute $100 million from its staked Ethereum (ETH) treasury, while Galaxy will commit $25 million and serve as the fund manager.
The fund will allocate capital to DeFi liquidity protocols and other on-chain yield opportunities, aiming to generate additional returns while helping Sharplink maintain its long-term exposure to Ethereum.
Galaxy CEO Mike Novogratz said this structure reflects growing institutional demand for blockchain investment products that offer returns and risk management tools similar to those used in traditional finance.
Sharplink Ethereum portfolio value. Source: CoinGecko
Sharplink is one of the public companies holding the most Ethereum, with over 868,000 ETH on its balance sheet. At the market peak in October, this holding was valued at nearly $4 billion.
As ETH prices declined, Sharplink posted a first-quarter loss of nearly $686 million.
Despite being pressured by Ethereum's price decline, Sharplink continues to expand its Ethereum treasury strategy.
The company reported a net loss of $685.6 million, or $3.25 in diluted loss per share, primarily due to non-cash accounting charges resulting from the decline in ETH prices this quarter. Of this amount, $506.7 million stemmed from unrealized losses on its Ethereum holdings.
According to CoinMarketCap data, Ethereum fell from a high of approximately $3,354 in mid-January to $2,104 on March 31. Its latest trading price on Monday was around $2,339.
Revenue for the quarter increased to $12.1 million, a significant rise from $700,000 in the same period last year, reflecting the expansion of the company’s operations.
Since launching the Ethereum treasury strategy in June 2025, Sharplink has accumulated approximately 18,800 ETH in staking rewards. The company held $16.9 million in cash as of the end of the first quarter.
Sharplink balance sheet as of March 31, 2026. Source: Sharplink
This performance highlights the volatility inherent in cryptocurrency treasury strategies, particularly for companies that made significant purchases over the past year. Similar pressures have also affected Bitcoin treasury companies, whose earnings fluctuate sharply with the price of their underlying assets.