Galaxy CEO Mike Novogratz declared the “age of speculation” in cryptocurrency is ending, shifting toward real-world asset tokenization and “much lower returns.” He compared market sentiment after the November 2022 FTX collapse to the October 2025 flash crash that wiped out $19 billion in derivatives. Despite this shift, Galaxy is launching a $100 million hedge fund with up to 30% crypto exposure and 70% in financial services stocks.
Mike Novogratz, CEO of Galaxy, stated the era of high-risk crypto speculation is concluding. He told a news outlet the focus is now on using crypto infrastructure for global financial services.
“It’s going to be real-world assets with much lower returns,” Novogratz said. He framed the current market dynamic as a broader financial sector change.
Novogratz compared the November 2022 drawdown after FTX‘s bankruptcy to the October 2025 flash crash. That event erased $19 billion in crypto derivatives without a single triggering event.
“Crypto is all about narratives, it’s about stories,” he explained. He added that recovering from such losses takes significant time.
Galaxy is preparing to launch a $100 million crypto hedge fund before the end of March. The fund will balance crypto tokens with traditional equities.
According to a report, the fund will invest up to 30% in crypto assets. The remaining 70% will target financial services stocks affected by digital asset trends.
Novogratz credited growing tokenization interest for shifting market dynamics. He noted tokenized assets like stocks will offer different return profiles than speculative crypto.
Bitcoin has fallen over 47% from its October all-time high above $126,000. Top altcoins like Ethereum, XRP, and Solana have also seen sharp weekly declines.
