Key Points
- Hedge funds Brevan Howard and Galaxy Digital have seen exceptional returns due to the cryptocurrency market surge.
- Bitcoin’s rise to $108,000 and crypto-friendly policies have contributed to the market’s momentum.
Brevan Howard and Galaxy Digital, two hedge fund giants, have reaped remarkable returns thanks to the recent cryptocurrency market boom.
This success is largely attributed to Bitcoin’s surge to a value of $108,000.
Superior Performance of Crypto-focused Hedge Funds
Data from Hedge Fund Research reveals that in November, hedge funds focused on cryptocurrency saw a 46% increase, bringing their year-to-date returns to 76%.
This significantly outperforms the wider hedge fund industry, which only saw a 10% increase in the first 11 months of 2024.
Individual Hedge Fund Successes
Brevan Howard Asset Management, led by CEO Aron Landy, and managing $35 billion in assets, saw its primary cryptocurrency fund rise 33% in November alone.
This led to a 51% increase over the first 11 months of 2024.
Galaxy Digital, under the leadership of billionaire Mike Novogratz, has seen even greater success.
The firm’s hedge fund strategy yielded a 43% return in November and a 90% increase in 2024.
The New York-based company has effectively grown its assets under management to $4.8 billion, partly through the strategic acquisition of assets from struggling crypto businesses.
The recent market rally was further fueled by Donald Trump’s U.S. presidential election win, which investors believe could lead to more crypto-friendly regulations.
The appointment of venture capitalist David Sacks as cryptocurrency czar and the expected replacement of SEC Chair Gary Gensler with cryptocurrency advocate Paul Atkins has also boosted market confidence.
However, it was under Gensler’s leadership that the crypto sector saw a significant boost in January 2024, when the SEC approved 11 exchange-traded Bitcoin (BTC) funds.
This decision opened new avenues for both institutional and retail investment.
Despite this, the market saw a minor setback this week following the Federal Reserve’s announcement of lower-than-expected rate cuts for the upcoming year.
Bitcoin’s price has increased 130% year-to-date, reaching approximately $108,000.
However, a recent downturn saw BTC drop to as low as $92,175.
As of the last check on Saturday, Bitcoin was trading at $97,232.