Galaxy, Sharplink to Launch $125M ETH Yield Fund Next Week as On-Chain Demand Surges

Galaxy Digital and Sharplink are finalizing the launch next week of their $125 million Galaxy Sharplink Onchain Yield Fund, with $100 million from Sharplink's staked ETH treasury (~43,000 ETH) and $25 million from Galaxy, targeting DeFi liquidity for higher yields while preserving ETH exposure. The development follows a May 11 non-binding announcement tied to Sharplink's Q1 results—872,984 ETH holdings (~$1.7B), 18,800 ETH staking rewards since June 2025, $12.1M revenue, but $685.6M net loss from $506.7M unrealized ETH markdowns—and a May 12 transfer of the $100M allocation. Stocks rose (Sharplink +4.3%, Galaxy +4.8%) despite ETH dipping to $2,280, signaling institutional embrace of active on-chain strategies.