Galaxy Digital, led by Mike Novogratz, is in the process of launching a significant $100 million venture fund to support early-stage crypto startups. Bloomberg reported the development, with most of the funding expected to come from external investors.

In the past, Galaxy Ventures primarily used internal resources for investments. However, the decision was made to introduce a new fund, Galaxy Ventures Fund I, allowing external venture capitalists to participate. This shift highlights the company's goal to encourage innovation in the digital asset industry.

Galaxy Digital has set a minimum investment of $1 million for startups through this fund, showcasing its confidence in backing promising ventures in the crypto sector. Recently, Galaxy Ventures led a $2.7 million funding round for Citrea, a project focused on ZK-rollups for the Bitcoin network, emphasizing the firm's dedication to advancing blockchain technology.

In addition to establishing its venture fund, Galaxy Digital has been actively contributing to other funds in the crypto space. Its involvement in a $75 million fund managed by VC firm 1kx targeting crypto consumer apps demonstrates its broader investment approach.

The recent surge in venture capital investments aligns with the growing interest in cryptocurrencies, partly fueled by the approval of US spot Bitcoin ETFs in January. Bitcoin's significant rally this year, with a 50% gain, has contributed to the overall market surge, pushing the total crypto market capitalization to $2.61 trillion.

By launching a substantial venture fund, Galaxy Digital reaffirms its dedication to fostering innovation within the crypto industry. As the sector continues to evolve and attract more investments, initiatives like Galaxy's are set to have a significant impact on shaping its future trajectory.