Crypto Titans Back Trump Inaugural Committee; Hedge Fund Warns of Crypto Mania

The Trump U.S. Presidential Inaugural Committee has received significant financial backing from prominent players in the cryptocurrency sector, according to a recent filing to the Senate. Major firms, including Coinbase, Crypto.com, Galaxy Digital, and Paradigm Operations, each contributed $1 million to the committee. Additionally, Robinhood Markets has made a notable donation of $2 million. This fundraising effort is projected to surpass the financial support received during the 2017 inaugural ceremony, indicating a growing influence of the crypto industry in political funding. The Inaugural Committee is scheduled to release a comprehensive list of all contributors to the Federal Election Commission (FEC) by April 19th, potentially altering the landscape of political donations further intertwined with the cryptocurrency market.

A $71 billion hedge fund has warned that Trump’s support for crypto is fueling mania that could eventually end in market turmoil. Elliott Management, in an investor letter, warned that crypto is at the center of a speculative frenzy, with prices soaring with “no substance.” 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.