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.

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.

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.

Hedge funds have positioned for Donald Trump's U.S. presidency with their highest levels of borrowing since 2010, while betting the dollar would continue to rise, according to bank research and industry data.