The cryptocurrency market continues to astound with its achievements, ensuring significant earnings for major hedge funds like Brevan Howard and Galaxy Digital.
Hedge Funds Capitalize on Market Momentum
According to Hedge Fund Research, cryptocurrency-focused hedge funds achieved 46% gains in November, pushing year-to-date returns to 76%. This performance outpaces the broader hedge fund industry's 10% gain.
Positions and Strategic Successes
Brevan Howard Asset Management, led by CEO Aron Landy, manages $35 billion in assets. Its main cryptocurrency fund surged 33% in November, contributing to a 51% gain for the first 11 months. Under billionaire Mike Novogratz, Galaxy Digital posted even more impressive results: a 43% return in November and a 90% gain for the year, expanding its assets under management to $4.8 billion through strategic acquisitions.
Impact of Political Changes on the Market
The market rally gained momentum with Donald Trump's election victory, viewed by investors as a catalyst for crypto-friendly regulations. The appointment of venture capitalist David Sacks as cryptocurrency czar and the anticipated replacement of SEC Chair Gary Gensler with crypto advocate Paul Atkins bolstered market confidence.
Thus, hedge funds Brevan Howard and Galaxy Digital effectively leveraged market conditions and political changes to boost their returns. The SEC's earlier decision to approve Bitcoin ETFs has enhanced market interest, although recent announcements by the Federal Reserve prompted some price adjustments.
