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

The duo has risen as standout performers following Bitcoin’s rise to $108,000.

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

Hedge funds capitalize on market momentum

Brevan Howard Asset Management, with CEO Aron Landy at the helm, manages $35 billion in assets. The fund has seen its main cryptocurrency fund surge 33% in November alone. This contributed to a 51% gain for the first 11 months of 2024.

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

The New York-based firm has successfully expanded its assets under management to $4.8 billion. This was partly through strategic acquisitions of assets from distressed crypto companies.

The recent rally gained additional momentum following Donald Trump’s U.S. presidential election victory. Investors view this 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 has further helped market confidence.

Still, 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 new channels for 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.

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

Michael Novogratz’s Galaxy Digital (GLXY) has hired former Point72 chief financial officer Anthony Paquette to serve in the same role at the crypto financial services firm.

He will replace Alex Ioffe, who will transition into a senior adviser role, the company said in a statement on Friday.

Paquette previously spent four years as the CFO at Steve Cohen’s hedge fund Point72, leading the firm’s global finance, treasury, and broker relations, among other things. Before that, he worked at SoFi, JP Morgan Chase and Bank of America.

“I am thrilled to join Galaxy, whose reputation as a world-class operator and investor in digital assets, digital infrastructure and other emerging technologies precedes it,” Paquette said in a press release. “I look forward to expanding upon Galaxy’s best-in-class finance team and helping further cement the firm as the preeminent industry leader.”

Galaxy Digital CEO Mike Novogratz thanked Ioffe for building a robust finance team and preparing the firm for a potential U.S. listing.

The Toronto-listed company has been trying to go public in the U.S. through a listing on Nasdaq for some time. However, it is still awaiting approval from the Securities and Exchange Commission (SEC) to move its headquarters from the Cayman Islands to Delaware, which it filed for approval in February 2023.