Elliott Management’s Concerns on Crypto Collapse

Hedge fund Elliott Management warns that 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, asserts that “crypto is ground zero” for the speculative surge across all markets, partly 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.” This adds 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 stated in 2023, when bitcoin was trading around $29,000, that cryptocurrencies are “completely lacking in any value.”

> “There are thousands of cryptocurrencies,” Singer noted. “That’s why they’re worth zero. Anybody can make one. All they are is nothing with a marketing pitch—literally nothing.”

Bitcoin, the leading cryptocurrency, surged over the past year following Trump’s election. It traded around $43,000 one year ago, rose to $70,000 by November, and reached approximately $105,000 at publication time, according to The Block’s BTC price data.

Elliott’s letter also highlights the “immense advantage” of the U.S. dollar as the world’s reserve currency and cautions against officials who support “marginalizing the dollar,” deeming it “profoundly dangerous.”

Over $170 million was spent to elect 253 pro-crypto candidates last November, and reports indicate that crypto PAC Fairshake has already raised $116 million for the 2026 midterms.