Brevan Howard, Galaxy Digital Hedge Funds Surge on Cryptocurrency Market Momentum

The cryptocurrency market surge has delivered exceptional returns for hedge fund giants Brevan Howard and Galaxy Digital.

Hedge fund giants Brevan Howard and Galaxy Digital are reaping the benefits of the cryptocurrency market surge, with both funds delivering exceptional returns in 2024.

As Bitcoin's price soared to $108,000, hedge funds specializing in cryptocurrencies achieved impressive gains. According to Hedge Fund Research, these funds recorded a 46% gain in November, pushing their year-to-date return to 76%. This performance outpaced 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, saw its main cryptocurrency fund surge by 33% in November alone, contributing to a 51% gain in the first 11 months of 2024. The fund, which began trading in January with $30 billion in assets, now manages around $35 billion.

Meanwhile, Galaxy Digital, headed by billionaire Mike Novogratz, 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 firm also saw its assets under management grow to $4.8 billion, thanks in part to its strategic acquisitions of assets from distressed crypto companies.

The recent rally gained additional momentum following Donald Trump’s U.S. presidential election victory, with investors viewing it as a potential catalyst for more crypto-friendly regulatory policies.

Trump's appointment of venture capitalist David Sacks as cryptocurrency czar and the anticipated replacement of SEC Chair Gary Gensler with cryptocurrency advocate Paul Atkins further boosted market confidence.

It was under Gensler that the crypto sector received a major boost in January 2024 when the SEC approved 11 exchange-traded Bitcoin (BTC) funds. This move opened up new channels for both institutional and retail investment.

However, the market experienced a slight pullback this week following the Federal Reserve’s announcement of lower-than-expected rate cuts for the coming year. This caused a slight dip in cryptocurrency prices.

Bitcoin's price has surged by 130% year-to-date, reaching approximately $108,000. However, the recent pullback saw BTC trading as low as $92,175. At last check on Saturday, Bitcoin was trading at $97,232.