Galaxy and SharpLink Plan $125 Million on-Chain Yield Fund With Ethereum at Its Core
Galaxy Digital and SharpLink Gaming plan to launch a $125 million institutional on-chain yield fund targeting high-yielding opportunities in blockchain-based financial markets, with initial commitments already in place. The fund will allocate to Ethereum (ETH) staking and related decentralized finance applications, the companies said in a PR Newswire release published May 11.
Structure and Strategy
Staking refers to locking up a cryptocurrency to support a blockchain network’s security and transaction validation, in exchange for periodic token rewards.
For Ethereum, staking yields have ranged between 3% and 5% annually depending on total network participation. The fund aims to go beyond simple staking by allocating to decentralized finance protocols that offer higher yield through lending, liquidity provision, and structured on-chain products.
Galaxy Digital will serve as the investment manager for the fund.
SharpLink Gaming, a publicly traded company that has pivoted toward digital asset treasury strategies, will anchor the fund with committed capital. The $125 million figure reflects commitments rather than capital already deployed, meaning the fund will build its position over time as allocations settle.
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Background
SharpLink Gaming began accumulating Ethereum as a treasury asset in 2025, following the broader corporate treasury playbook popularized by MicroStrategy (MSTR) with Bitcoin.
The company reoriented around digital asset holdings as its core sports-betting technology business faced margin pressure. Galaxy Digital, the cryptocurrency-focused financial services firm founded by Mike Novogratz, manages institutional funds across lending, trading, and asset management.
The pairing of a corporate Ethereum holder with an institutional fund manager creates a structure where SharpLink’s existing ETH position can generate yield rather than sitting idle in a treasury wallet.
The fund is described in the announcement as the first of its kind for institutional on-chain yield, though competitors including Coinbase Asset Management and various DeFi-native fund structures have offered comparable products to accredited investors since 2023.
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What to Watch
Whether the SEC treats shares in an on-chain yield fund as securities subject to registration requirements remains the key regulatory variable. Galaxy and SharpLink did not address that question directly in the announcement.
The fund’s actual yield performance relative to simple Ethereum staking will determine whether institutional allocators treat the added complexity as worth the fee. The next disclosure to watch is Galaxy’s formal fund structure filing, which will confirm investor eligibility rules and fee terms.
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