These crypto hedge funds are benefiting from Bitcoin’s historic rally

The cryptocurrency market’s meteoric rise has delivered exceptional returns for hedge fund giants Brevan Howard and Galaxy Digital.

The duo rose as breakout artists after the price of Bitcoin rose to $108,000.

According to data from Hedge Fund Research, cryptocurrency-focused hedge funds gained 46% in November, pushing their year-to-date returns to 76%. This performance outperforms the broader hedge fund industry, which posted a more modest gain of 10% in the first 11 months of 2024.

Hedge funds benefit from market momentum

Brevan Howard Asset Management, with CEO Aaron Landy at the helm, manages $35 billion in assets. The fund saw its flagship cryptocurrency fund rise 33% in November alone. This contributed to a 51% gain during the first eleven months of 2024.

Under the leadership of billionaire Mike Novogratz, Galaxy Digital has achieved even more impressive results. Its hedge fund strategy delivered a 43% return in November and a 90% gain in 2024.

The New York-based company succeeded in expanding its assets under management to $4.8 billion. This was partly through strategic acquisitions of assets from distressed cryptocurrency companies.

The recent rally gained additional momentum after Donald Trump’s victory in the US presidential election. Investors view this as a potential catalyst for more crypto-friendly regulatory policies.

Trump’s appointment of venture capitalist David Sachs as crypto czar and the expected replacement of SEC Chairman Gary Gensler with crypto advocate Paul Atkins have helped boost market confidence.

However, under Gensler, the cryptocurrency sector received a major boost in January 2024 when the Securities and Exchange Commission (SEC) approved 11 exchange-traded bitcoins (Bitcoin) Money. This move has opened new channels for institutional and retail investment. However, the market saw a slight pullback this week after the Federal Reserve announced smaller than expected interest rate cuts for next year.

The price of Bitcoin is up 130% year to date, reaching around $108,000. However, The last retreat BTC saw a drop as low as $92,175. At last check on Saturday, Bitcoin was trading at $97,232.