Sharplink, Galaxy launch $125M onchain yield fund for ETH treasury

Sharplink and Galaxy Digital launched a $125 million onchain yield fund on Aug. 7, backed by $100 million from Sharplink's staked ETH treasury.

"We're entering a new phase of institutional adoption, with capital moving from passive ownership to active participation in blockchain-based markets," Mike Novogratz, founder and CEO of Galaxy, said.

Galaxy contributes $25 million and manages the Galaxy Sharplink Onchain Yield Fund, LP, which will deploy capital into onchain yield strategies and identified investments. Galaxy has deployed capital across digital asset markets since 2020, using proprietary research, protocol diligence and risk controls. The fund adds the first institutional-grade, scaled onchain strategy to Galaxy's asset management platform, according to Steve Kurz, global co-head of digital assets at Galaxy.

The fund represents a shift for corporate treasuries from passive ETH accumulation to active yield generation. Sharplink CEO Joseph Chalom said the allocation is part of a disciplined, institutional-grade strategy to make ETH more productive. SBET shares rose 2.23 percent and GLXY gained 3.12 percent on the announcement.

Sharplink CIO Matthew Sheffield said the fund addresses a "cold-start problem" for emerging crypto protocols, where venture capital buys tokens or company equity but rarely kickstarts activity within the protocols themselves. The fund aims to fill that gap for projects building in the Ethereum ecosystem.

Onchain yield strategies use smart contracts to automate returns from lending, staking, liquidity provision and capital movement across decentralized finance protocols. The fund's structure pairs a public company's ETH holdings with an established digital asset manager, a model that could influence how other corporate treasuries approach crypto yield generation.

The launch follows a series of institutional moves by Sharplink, including a planned $200 million ETH deployment into decentralized finance strategies on Consensys Linea in October 2025 and funding for Ethereum-focused research labs. Historical crypto-tagged events for SBET averaged a 1.78 percent 24-hour price reaction across five prior announcements.

Sharplink, founded in 2019 and headquartered in Miami, operates as an institutional-grade Ethereum treasury platform. Galaxy, based in New York, offers a digital assets platform spanning trading, advisory, asset management, staking and tokenization, alongside its data center infrastructure business. Galaxy's 1.6 GW Helios data center campus in Texas adds a separate revenue stream beyond digital asset management.

The partnership creates a template for public companies holding crypto assets to move beyond passive staking into active onchain yield generation, potentially reshaping how ETH treasuries are valued by shareholders. Sharplink's next earnings call, scheduled for Aug. 10, will offer the first public update on the fund's deployment timeline.

This article is for informational purposes only and does not constitute investment advice.