Crypto Hedge Funds Surge Brevan Howard and Galaxy Digital Ride Bitcoin to Stellar Returns

The cryptocurrency market has delivered impressive returns for major hedge funds, particularly Brevan Howard and Galaxy Digital, who have capitalized on Bitcoin’s stellar rise. With Bitcoin reaching a high of $108,000, these hedge funds have emerged as top performers, showcasing the growing potential of crypto investments.

According to data from Hedge Fund Research, cryptocurrency-focused hedge funds saw remarkable gains of 46% in November, bringing their year-to-date returns to 76%. This performance far outpaces the broader hedge fund industry, which reported a more modest 10% gain over the first 11 months of 2024.

Brevan Howard Asset Management, led by CEO Aron Landy, manages $35 billion in assets. The firm’s primary cryptocurrency fund experienced a 33% surge in November alone, contributing to an impressive 51% gain for the year. This performance highlights the increasing success of traditional hedge funds integrating crypto into their portfolios.

Meanwhile, Galaxy Digital, under the leadership of billionaire Mike Novogratz, has delivered even stronger results. The firm’s hedge fund strategy achieved a 43% return in November and an impressive 90% return for 2024. Galaxy Digital has expanded its assets under management to $4.8 billion, partially through strategic acquisitions of distressed crypto assets, further enhancing its position in the growing digital asset market.

The cryptocurrency rally has been fueled by several key factors, including Bitcoin’s year-to-date surge of 130%. The victory of Donald Trump in the U.S. presidential election is seen as a potential catalyst for more crypto-friendly policies. The appointment of venture capitalist David Sacks as a cryptocurrency czar and the anticipated replacement of SEC Chair Gary Gensler with cryptocurrency advocate Paul Atkins have helped boost investor confidence.

Additionally, the SEC’s approval of 11 exchange-traded Bitcoin funds in January 2024 was a pivotal moment, offering new investment opportunities for both institutional and retail investors. These developments have contributed to the ongoing rally, though a slight pullback occurred this week following the Federal Reserve’s announcement of lower-than-expected rate cuts for the coming year. Despite this, Bitcoin’s price remains robust, trading at approximately $97,232 after briefly dipping to $92,175.

Overall, the continued rise of Bitcoin, coupled with supportive regulatory shifts, has created an environment of strong returns for cryptocurrency-focused hedge funds like Brevan Howard and Galaxy Digital. Their ability to tap into the growing digital asset market has positioned them as leaders in the evolving landscape of crypto investments.