{"id":359,"date":"2026-05-12T14:35:31","date_gmt":"2026-05-12T14:35:31","guid":{"rendered":"https:\/\/1stblock.info\/?p=359"},"modified":"2026-05-12T14:35:31","modified_gmt":"2026-05-12T14:35:31","slug":"galaxy-digital-sharplink-launch-125m-institutional-defi-yield-fund-from-eth-treasury","status":"publish","type":"post","link":"https:\/\/1stblock.info\/?p=359","title":{"rendered":"Galaxy Digital, Sharplink Launch $125M Institutional DeFi Yield Fund From ETH Treasury"},"content":{"rendered":"\n

Galaxy Digital and Sharplink announced plans to form an institutional on-chain yield fund with $125 million<\/strong> in initial commitments. The Galaxy Sharplink Onchain Yield Fund will receive $100 million<\/strong> from Sharplink’s staked ETH<\/strong> treasury and $25 million<\/strong> from Galaxy, which will serve as investment manager. Capital will be deployed across DeFi liquidity protocols and other on-chain yield strategies while maintaining Sharplink’s core ETH exposure.<\/p>\n\n\n\n

The announcement reframes how publicly listed Ether treasuries can be operated. Until now, Sharplink’s yield came primarily from native staking and restaking \u2014 including a $170 million<\/strong> allocation on Consensys’ Linea network in January. The Galaxy partnership pushes the strategy further into active DeFi participation, allocating to liquidity protocols and yield-generating applications.<\/p>\n\n\n\n

The numbers behind Sharplink are significant. The company now holds 872,984 ETH<\/strong> in its treasury \u2014 making it the second-largest public corporate holder of Ether behind Bitmine Immersion, which holds more than 4.5 million ETH. Sharplink has raised roughly $3.2 billion<\/strong> in capital markets to fund accumulation, measuring success by ETH per share \u2014 currently 4.01 \u2014 rather than GAAP earnings. Institutional ownership climbed from 6% to 46% over 2025, even as the company reported a $734.6 million<\/strong> net loss driven almost entirely by $616.2 million<\/strong> in unrealized ETH losses under fair-value accounting.<\/p>\n\n\n\n

Galaxy’s positioning matters here. The firm previously warned in a July 2025 research note that the proliferation of Digital Asset Treasury Companies pursuing identical raise-and-buy strategies could leave the market “structurally fragile.” The Sharplink tie-up offers a template for what comes after passive accumulation \u2014 putting balance-sheet crypto to work on-chain instead of letting it sit idle.<\/p>\n\n\n\n

The timing is sharpened by risk context. DeFi has seen two large exploits in recent weeks \u2014 last month’s $292 million<\/strong> Kelp DAO incident and a $280 million<\/strong> Drift Protocol exploit. Sharplink CIO Matthew Sheffield framed the fund as a way to preserve core ETH exposure while generating excess returns above the average staking rate. Galaxy CEO Mike Novogratz called it evidence that “institutional capital is moving on-chain.”<\/p>\n\n\n\n

Two market implications. First, if more ETH treasury companies follow this model, demand for institutional-grade DeFi infrastructure \u2014 risk-managed liquidity provision, audited protocol pools, custody-integrated yield routing \u2014 could become a structural bid for the ecosystem. Second, the fund is still under a non-binding memorandum of understanding and is expected to launch in the coming weeks, so execution risk is real. The fund’s first deployments will be closely watched as a signal of where institutional capital actually flows on-chain.<\/p>\n","protected":false},"excerpt":{"rendered":"

Galaxy Digital and Sharplink announced plans to form an institutional on-chain yield fund with $125 million in initial<\/p>\n","protected":false},"author":2,"featured_media":360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/posts\/359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1stblock.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=359"}],"version-history":[{"count":1,"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/posts\/359\/revisions"}],"predecessor-version":[{"id":361,"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/posts\/359\/revisions\/361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/1stblock.info\/index.php?rest_route=\/wp\/v2\/media\/360"}],"wp:attachment":[{"href":"https:\/\/1stblock.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1stblock.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1stblock.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}