Crypto hedge funds made big bucks last year on the back of a $1.7tn market rally.
Tephra Digital, Pythagoras Investments, Eltican Asset Management and Fasanara Digital cashed in on soaring crypto prices last year.
US-based Tephra Digital, which is backed by Jefferies’ Leucadia Asset Management, gained 100.2% in 2024, according to people familiar with the matter. The crypto hedge fund has $125m in assets under management.
Another US-based crypto hedge fund, Pythagoras Investments’ Absolute Return fund, gained 41.8% last year. The firm’s assets under management stand at $233m, people familiar with the matter said.
London-based Eltican Asset Management’s market neutral fund posted a 33% jump in 2024. Eltican was co-founded by former Winton portfolio manager Mehdi-Laurent Akkar. It has $90m in assets under management, according to people familiar with the matter.
Fasanara Digital, a London-headquartered crypto hedge fund with $190m in assets under management, gained 24% last year. The firm is aiming to grow its assets under management to $300m by the end of the first half of 2025, people with knowledge of the matter said.
The crypto market witnessed one of its best years in 2024 with bitcoin hitting an all-time high of $108,000 on 17 December. The rally started in January last year when the US Securities and Exchange Commission approved bitcoin ETF applications.
Crypto hedge funds were not the only ones benefitting from the positive market sentiment in 2024. The S&P 500’s 24% rally last year helped many traditional hedge funds post hefty returns.
Macro hedge fund Discovery Capital gained 52% last year and DE Shaw’s Oculus fund jumped 36%.
London-based hedge fund Shiprock Capital Management gained 34.5% last year on the back of winning trades across emerging markets and corporate bonds, according to people familiar with the matter.