A $71 billion hedge fund warns that Trump’s support for crypto is fueling mania that could eventually end in market turmoil.

Crypto is booming, but not everyone is cheering. A $70 billion hedge fund says President Donald Trump‘s support for cryptocurrencies could end in disaster. Elliott Management warns that crypto is at the center of a speculative frenzy, adding that prices have soared with “no substance” and that politicians backing crypto are playing a dangerous game.

Per a Financial Times report on Jan. 30, the hedge fund warned in an investor letter that Trump’s actions endanger the crypto market as the “inevitable collapse” of the bubble “could wreak havoc in ways we cannot yet anticipate.”

The fund sees parallels with the AI boom and sky-high stock prices, calling investors “a crowd of sports bettors.” But crypto, it says, is “ground zero” for the mania, thanks to its “proximity to the White House.”

The hedge fund, which managed $69.7 billion in assets under management in 2024, said in the letter that any official pushing alternatives to the greenback is making a “profoundly dangerous” move.

Trump’s business ties to crypto are growing. He and his sons backed a platform called World Liberty Financial, a decentralized finance fund, which already draw scrutiny over possible inside trading. In January, President Donald Trump and Melania Trump launched meme coins Official Trump (TRUMP) and Melania (MELANIA), fueling the crypto craze. Trump Media, where he owns a majority stake, also plans to invest up to $250 million in crypto, Coin Insider Daily reported earlier.

Elliott’s founder, Paul Singer, is a longtime Republican donor. He gave $56 million in 2024 but has been critical of Trump’s policies. Still, he donated $5 million to a Trump PAC last election. The hedge fund says it has “never seen a market like this.”