Galaxy and Sharplink Launch $125M Ethereum DeFi Yield Fund for Institutions

Digital asset firm Galaxy and Ethereum treasury company Sharplink are preparing to launch a new institutional fund focused on generating yield from decentralized finance (DeFi) strategies using Ether holdings. The fund, named the Galaxy Sharplink Onchain Yield Fund, is expected to launch in the coming weeks with $125 million in initial commitments.

Sharplink plans to contribute $100 million worth of staked Ether from its treasury, while Galaxy will add $25 million and oversee management of the fund. The structure is designed to help institutions earn additional returns from crypto assets without selling their long-term ETH holdings.

Institutional DeFi Yield Strategy Gains Momentum

The fund will deploy capital into DeFi liquidity protocols and other blockchain-based yield opportunities. Galaxy CEO Mike Novogratz said institutional demand for regulated crypto investment products continues to grow, especially products that combine yield generation with risk management tools.

Sharplink currently holds more than 868,000 ETH, making it one of the largest corporate Ethereum holders. Since adopting its Ethereum treasury strategy in June 2025, the company has earned nearly 18,800 ETH through staking rewards.

Sharplink Reports Q1 Loss Amid ETH Price Decline

Despite expanding its Ethereum strategy, Sharplink reported a first quarter net loss of $685.6 million, mainly due to unrealized losses tied to Ether’s declining price during the quarter.