Bitcoin Soars Past $100K: Crypto Funds Outshine Hedge Funds Amid Trump’s Return
Staff Editor Bitcoin Soars Past $100,000 as Crypto Funds Surge in 2024
In a landmark year for cryptocurrencies, Bitcoin surged by 121% in 2024, breaking the $100,000 barrier for the first time. The digital asset industry experienced a significant resurgence, partly attributed to Donald Trump’s reelection. Despite the strong performance of the leading cryptocurrency, many top crypto managers struggled to match Bitcoin’s impressive gains.
Brevan Howard Digital, led by Alan Howard, emerged as a standout performer in the crypto fund space. Managing $2.4 billion in crypto assets, the multistrategy fund returned 51.3% in 2024. The firm has established significant operations in Abu Dhabi, conducting trading activities from the UAE, where regulators maintain a supportive yet strict approach aimed at fostering industry growth.
Another notable performer was Reflexive Capital, a $100 million digital assets hedge fund managed by David Kalk, a former Peter Thiel trader. The fund, launched with former Point72 and Brevan Howard executives, returned an impressive 106% in 2024.
Industry-wide, crypto funds outperformed traditional hedge funds, with the average crypto fund rising nearly 60% in 2024. A significant portion of these gains came in November, following Trump’s election, with the average crypto fund gaining over 35% in that month alone.
Real Vision’s multistrategy crypto fund, led by Raoul Pal, rose over 51% in November. The firm’s Exponential Age Digital Asset fund finished 2024 up nearly 62%, earning it the top spot on HSBC’s weekly roundup for the year.
Pythagoras Investment Management’s Alpha Long Biased strategy achieved a remarkable 204% return in 2024. The fund combines a bitcoin position with momentum and long-short strategies. CEO Mitchell Dong anticipates the potential establishment of a national bitcoin reserve as a future catalyst, suggesting that countries may begin accumulating bitcoin ahead of the United States.
As the crypto market continues to evolve, these performances highlight the growing importance and potential of digital assets in the global financial landscape.
