'Inevitable collapse': Trump’s crypto push sparks concern at Paul Singer's Elliott Management: FT

Hedge fund Elliott Management says the "inevitable collapse" of the crypto bubble "could wreak havoc in ways we cannot yet anticipate," according to an investor letter seen by Financial Times.

The hedge fund led by Paul Singer said "crypto is ground zero" for the speculative surge across all markets, in part due to its "perceived proximity to the White House," FT reports.

Last week, President Donald Trump signed an executive order to explore a strategic digital asset reserve. This week, Trump’s media company launched Truth.fi, a fintech brand that will invest up to $250 million in traditional investment vehicles and “similar cryptocurrencies or crypto-related securities.” That comes in addition to World Liberty Financial, a DeFi protocol that counts Trump as its "chief crypto advocate," as well as the official TRUMP and MELANIA memecoins launched just before Inauguration Day.

Elliott's Singer told the Wall Street Journal in 2023, when bitcoin was trading around $29,000, that cryptocurrencies are "completely lacking in any value."

"There are thousands of cryptocurrencies," Singer said at the time. "That’s why they’re worth zero. Anybody can make one. All they are is nothing with a marketing pitch—literally nothing."

The world's foremost cryptocurrency, bitcoin, has surged over the past year and accelerated around the election of President Trump. Bitcoin traded around $43,000 one year ago, rose to the $70,000 level by November and was around $105,000 as of publication time, according to The Block's BTC price data.

Elliott’s letter also points to the "immense advantage" the U.S. dollar has as the world’s reserve currency and said elected officials who support "marginalising the dollar" was "profoundly dangerous."

More than $170 million was spent to elect 253 pro-crypto candidates last November, and it's been reported that crypto PAC Fairshake has already raised $116 million for the 2026 midterms.