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encryption Fund makes a crazy profit of 76%! Trump's election has led institutions to get on board on a large scale, and a digital asset frenzy is coming.
Recently, the price of BTC broke through the $100,000 mark, setting off a new wave of enthusiasm, and some hedge funds focusing on Crypto Assets have thus made substantial profits.
According to data from Hedge Fund Research, funds adopting encryption strategies increased by an average of 46% in November, with a year-to-date return rate of 76%.
Part of this wave of growth can be attributed to Trump's victory in the US election. It is widely expected that the Trump administration's friendly stance towards cryptocurrencies will be in stark contrast to the relatively conservative stance of the Biden administration. Damien Miller, Managing Partner of MP Alpha Capital, said:
"Trump's election is good news for digital assets, as it will make regulation clearer and create a more friendly and collaborative environment for BTC and blockchain."
Bitcoin breaks through the $100,000 mark, and crypto asset funds reap a bumper harvest.
As of this year, the price of BTC has risen by 130% to about $100,000, driving the total market value of major cryptocurrencies from $1.8 trillion to $3.5 trillion. As of the time of writing, BTC has fallen to $95,196 per coin.
Image Source: Wall Street Journal
Investors generally believe that the attitude of the Trump administration towards cryptocurrency will be more friendly than the previous administration. According to data from Hedge Fund Research, funds that adopt encryption strategies rose an average of 46% in November, and the return rate from the beginning of the year to now has reached 76%.
This performance far exceeds the industry average, while the average return of hedge funds during the same period is only 10%. Cryptocurrency investment management company Galaxy Digital, founded by Brevan Howard Asset Management and billionaire Mike Novogratz, is the biggest winner in this wave of digital asset surge.
According to sources cited by the Financial Times, Brevan Howard's main encryption fund rose by 33% in November, and accumulated a 51% increase in the first 11 months of this year. As one of the largest hedge fund management companies, Brevan Howard launched a dedicated encryption business in 2021, with assets under management reaching as high as $35 billion.
Galaxy's hedge fund strategy rose by 43% in November and has increased by 90% year-to-date in 2024. The New York-based company has more than doubled its assets under management in the past two years, reaching $4.8 billion through acquisitions of bankrupt encryption companies and other means.
Analysis suggests that despite the slight decline in the cryptocurrency market this week due to the Federal Reserve indicating a lower interest rate cut next year than expected, it does not overshadow its overall strong performance.
Regulatory environment undergoes changes? Institutional investors are entering the market one after another.
In 2022, the industry was in deep crisis due to the collapse of SBF's FTX exchange, and the BTC price once fell to around $15,500. However, in January 2024, the U.S. Securities and Exchange Commission approved 11 BTC funds traded on exchanges, opening the door for institutional and retail investors to enter the cryptocurrency market.
Last week, BlackRock, the world's largest asset management company, also stated that they believe 'there are good reasons to include BTC in a multi-asset investment portfolio'.
In addition, some macroeconomic hedge funds have increased their investment in digital assets. MP Alpha Capital's $20 million global macroeconomic hedge fund has risen by more than 30% this year. The company's partner, Miller, said that their investment strategy revolves around institutional adoption of digital assets, loose monetary policy, weak US dollar, and ample macroeconomic background.
"We performed well in digital assets: Bitcoin, Ethereum, and Bitcoin miners."
However, several managers have warned that the surge in BTC is likely to cause investors to pause for reflection. Huang from NextGen Digitalventure said that although he is bullish on BTC and cryptocurrencies in the long term, 'no asset goes up in a straight line'.
【Disclaimer】There are risks in the market, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. The responsibility is at your own risk.
This article is reproduced with permission from: Foresight News
Original author: Wall Street Journal
The 'encryption' fund made a crazy profit of 76%! Trump's election has led institutions to enter in large numbers, and the digital asset frenzy is coming. This article was first published in 'encryption city'.