An investor letter from Elliott Management outlined its concerns that the White House’s support of crypto helped fuel a bubble and that it could weaken the U.S. dollar’s role as a global reserve currency.

Elliott Management wrote that White House policy is fueling a speculative crypto bubble that will eventually "wreak havoc."

Elliott’s criticism of the White House’s stance on crypto comes despite the fact that the firm’s founder, Paul Singer, is a longtime Republican donor who donated $56mn to conservative candidates in the 2024 election cycle, according to website OpenSecrets.

Hedge fund Elliott Management recently sent a letter to investors warning them away from crypto. It urged clients to remember that crypto is a speculative market, suggested that the White House has caused a massive bubble to form, and predicted that a huge crash is coming.

One of the most powerful hedge funds on Wall Street has reportedly criticized the Trump administration for helping drive a frenzy around cryptocurrencies that could ultimately harm investors.

Elliott Management warns that Trump’s pro-crypto policies are fueling a speculative bubble that could lead to market havoc.