A group of hedge funds that focus on cryptocurrency has seen massive profits in recent weeks. Bitcoin shot up strongly after Donald Trump’s election victory, leading to a price above $100,000.
According to the report by Financial Times, the data from Hedge Fund Research shows that hedge funds that used crypto strategies shared a gain of 46% in November, bringing total yearly gains for the niche to 76%.
Compared to the rest of the hedge fund industry, these returns were very strong in what would otherwise be a 10% average win.
Crypto financial services firm Galaxy Digital was among the big winners
The rally accelerated since Trump’s election win in November and boosted the value of the largest digital asset, Bitcoin.
Brevan Howard and Galaxy Digital were among the big winners. The surge also pushed up the value of smaller digital tokens.
This year, bitcoin has surged 130% to around $100,000, driving the total market value for major cryptocurrencies to rise by $1.8 trillion to $3.5 trillion.
But this week, the market declined slightly as the Federal Reserve signaled it would boost interest rates less than anticipated next year, which pummels high-risk assets.
In contrast to the Biden administration, which has been more cautious about digital currencies, investors hope the Trump administration’s appointments of high-level government roles will be more crypto-friendly.
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