TechFlow news, on January 23, according to Jinshi News, David Einhorn, founder of Greenlight Capital and billionaire investor, expressed skepticism in his latest letter to investors, stating that digital assets are approaching a dangerous level of hype.
Einhorn wrote: "Nothing is stopping the launch of more tradable tokens—nobody knows what comes next, but it feels crazy. It's more likely that level-headed governments should no longer borrow trillions from bond markets to speculate in Bitcoin; in fact, doing so makes no strategic sense." Einhorn also criticized bullish forecasts that have driven Bitcoin to new record highs.
In the letter, he stated that Greenlight Capital has established short positions in two leveraged ETFs linked to MicroStrategy, the largest corporate holder of Bitcoin.
"These products are destined to fail," Einhorn said. "We know who the U.S. president is, but nobody can predict what he will actually do." He added that economic policies, tariffs, and Trump's mission to cut government spending have made the outlook even murkier.
Greenlight Capital, founded by David Einhorn in 1996, is a well-known hedge fund renowned for its value investing strategy. The fund gained widespread attention for successfully predicting and shorting Lehman Brothers before the 2008 financial crisis, and remains one of Wall Street’s most influential hedge funds.
