The cryptocurrency market surge has propelled hedge fund giants Brevan Howard and Galaxy Digital to stellar returns, as Bitcoin continues its historic rally. According to data from Hedge Fund Research, cryptocurrency-focused hedge funds saw gains of 46% in November, pushing their year-to-date returns to an impressive 76%. This performance far outpaces the broader hedge fund industry, which recorded a more modest 10% gain in the first 11 months of 2024.
Brevan Howard Asset Management, led by CEO Aron Landy, manages a whopping $35 billion in assets. The fund’s main cryptocurrency fund surged 33% in November alone, contributing to a 51% gain for the year. Meanwhile, under the leadership of billionaire Mike Novogratz, Galaxy Digital has posted even more impressive results. Their hedge fund strategy delivered a 43% return in November and a remarkable 90% gain in 2024, with assets under management expanding to $4.8 billion through strategic acquisitions.
The recent rally in the cryptocurrency market gained additional momentum following Donald Trump’s U.S. presidential election victory, as investors anticipate more crypto-friendly regulatory policies. Trump’s appointment of venture capitalist David Sacks as cryptocurrency czar and the expected replacement of SEC Chair Gary Gensler with cryptocurrency advocate Paul Atkins have further boosted market confidence.
However, the market experienced a slight pullback this week after the Federal Reserve announced lower-than-expected rate cuts for the coming year. Despite this, Bitcoin’s price has surged 130% year-to-date, reaching approximately $108,000. The recent pullback saw BTC drop to $92,175, but at last check on Saturday, it was trading at $97,232.
Overall, the success of Brevan Howard and Galaxy Digital in riding the Bitcoin rally highlights the growing importance of cryptocurrency in the hedge fund industry and the potential for significant returns in this volatile market. Investors will be closely watching how these funds navigate future market developments and regulatory changes to continue their impressive performance.