Galaxy Digital and Sharplink Launch $125 Million Onchain Yield Fund Using Staked ETH

Galaxy Digital and Sharplink agreed to launch the Galaxy Sharplink Onchain Yield Fund, a $125 million onchain yield strategy using staked ETH, with $100 million from Sharplink and $25 million from Galaxy.

“Galaxy Digital to manage Sharplink’s new $125 million onchain yield play The Galaxy Sharplink Onchain Yield Fund would receive $100 million from Sharplink’s staked ETH treasury and $25 million from Galaxy”

@coindesk

The companies said the fund will deploy capital across decentralized finance liquidity protocols and other onchain yield platforms, while Galaxy will manage allocations and risk parameters and Sharplink will maintain ownership of its core ETH holdings.

@coindesk

Sharplink confirmed it will commit part of its existing ether reserves, describing the allocation as about 43,000 ETH at current market prices, and said it will keep the majority of its 872,984 ETH treasury outside the strategy.

CoinDesk said the fund is expected to commence in the coming weeks under a non-binding memorandum of understanding, and that Galaxy will manage the investment while the structure is designed to keep Sharplink’s core ETH exposure intact.

CoinCentral reported the memorandum of understanding remains non-binding and that the firms expect operations to start soon, with Galaxy executing allocations while Sharplink continues staking activities alongside deploying a portion into external liquidity protocols.

The partnership comes as Sharplink disclosed a net loss of $685.6 million for the first quarter of 2026, with $506.7 million of the deficit stemming from mark-to-market losses on its Ether position, and Ether’s value falling from around $3,354 in mid-January to $2,104 by the conclusion of March.

Sharplink also reported it has accumulated 872,984 ETH and generated 18,800 ETH in staking rewards since launching its ether treasury strategy in June 2025, while CoinCentral described the new allocation as a small portion of its total ETH reserves.

Bitcoin News

In a statement carried by MEXC Exchange, Galaxy CEO Mike Novogratz said institutional appetite for blockchain-based financial products has reached a maturity level where participants can use sophisticated yield generation, liquidity provision, and risk mitigation instruments comparable to traditional financial markets.

Sharplink’s chief executive Joseph Chalom characterized the collaboration as a mechanism to enhance the company’s treasury performance while supporting the development of the broader decentralized finance infrastructure, and Matthew Sheffield emphasized that the fund structure preserves Sharplink’s fundamental staked ETH position while creating additional value for equity holders.

The Block added that CEO Joseph Chalom said, "We're trying to hit singles and doubles," and also quoted him saying, "We're not looking for VC-like returns," as Sharplink expands from traditional ether staking into other onchain yield strategies.

The fund is planned to launch in the coming weeks, and Galaxy will serve as investment manager under the non-binding memorandum of understanding that awaits finalization of definitive agreements before becoming legally binding.

“Galaxy Digital, the cryptocurrency financial services firm founded by Mike Novogratz, has partnered with Ethereum treasury management company Sharplink to launch a $125 million decentralized finance (DeFi) yield fund”

Bitcoin World

The Globe and Mail’s transcript materials said the on-chain yield fund partnership targets a $125 million deployment, with Sharplink contributing roughly 80% of capital, and it described management’s longer-term allocation policy as keeping most ETH in simple and liquid staking with a minority allocated to more advanced yield strategies.

In the same transcript materials, Sharplink’s CEO Joseph Chalom said, "to date, we've been beating the Ethereum staking rate, and we intend to continue to do that as our benchmark and hurdle," while CFO Robert DeLucia noted that the reported accounting losses do not reduce ETH unit holdings or represent realized economic loss.

The Blockhead account of Sharplink’s earnings said the fund represents a meaningful expansion of Sharplink’s strategy and that CEO Joseph Chalom described the approach as hitting "singles and doubles" rather than venture-style returns.

Bitcoin News framed the initiative as putting Sharplink’s ETH treasury to work through active DeFi strategies while maintaining long-term exposure to the underlying cryptocurrency, and it identified the fund as the Galaxy Sharplink Onchain Yield Fund with Galaxy contributing $25 million and Sharplink allocating $100 million.