Hedge fund giant Elliott Management is reportedly concerned about President Trump’s embrace of digital assets and thinks that it could “wreak havoc” on financial markets.
According to an investor letter seen by the Financial Times, the $70 billion hedge fund says crypto assets have “no substance” and is critical of politicians who are supportive of the industry.
[adinserter block="1"]Elliott Management has “never seen a market like this” and is likening crypto investors to “a crowd of sports bettors.”
“[The] inevitable collapse [of crypto] could wreak havoc in ways we cannot yet anticipate.”
Elliott also views crypto as potentially “marginalizing the dollar” which is “profoundly dangerous.”
Paul Singer, the founder, president and co-CEO of the firm, was originally a critic of Trump, before eventually giving in and becoming a donor to the two-time president as early as 2017. Reports also surfaced in 2024 of Singer and fellow hedge fund giant Ken Griffin discussing donating to Trump’s presidential campaign.
Citing data from OpenSecrets, the Financial Times says the Republican supporter donated about $56 million to conservative candidates during the 2024 election cycle.
Despite a history of support for Trump and Republicans, Singer’s firm reportedly questions why the government has encouraged alternatives to the US dollar at a time when other countries – like the BRICS alliance – have been attempting to lessen their dependence on it.
Shortly after being elected president, Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology,” which states the administration supports the “responsible growth” and use of digital assets and blockchain technology.
The order revokes President Biden’s previous digital asset directives and creates a new working group that will coordinate and propose a unified regulatory approach to digital assets within 180 days.
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