Elliott Management said a crypto collapse could "wreak havoc in ways we cannot yet anticipate."The White House's boosting of crypto is fueling speculation, it said in a letter.The letter questioned why the administration would embrace alternative reserve assets that threaten the dollar's role.

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.

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.

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.