Elliott Management, a $70 billion hedge fund, warned that financial markets could suffer due to Trump’s support for digital assets. The fund expressed skepticism about the underlying reality of digital assets, suggesting that the markets may face an unprecedented situation.
Elliott Management’s Critique
In its letter to investors, the fund criticized the essence of digital assets, arguing that investor behavior is problematic. It compared crypto investors to sports gamblers, warning of the unexpected risks of a market collapse. These statements highlight the potential for unforeseen downturns in the market.
Trump’s Approach and New Regulations
Since taking office, President Trump has aimed to strengthen leadership in digital financial technologies. The relevant executive order seeks to replace previous policies with a new regulatory approach, expecting a compliant regulation package within 180 days.
Though Paul Singer, the fund’s founder and co-CEO, had previously criticized Trump, he has since started offering support. Singer’s attempts to contribute to Trump’s campaign alongside other major financial executives have surfaced, with supporters reportedly making significant donations for the 2024 elections.
