Eric Semler, chairman of healthcare technology company Semler Scientific Inc., says many hedge fund executives are doubtful about Bitcoin’s long-term prospects once U.S. President Donald Trump leaves office.
“I think they see it as a fleeting trend and believe that after the Trump administration, Bitcoin will likely drop significantly,” Semler told Coin Stories host Natalie Brunell on Thursday.
Semler remains confident that Bitcoin represents a significant investment opportunity
Semler, who founded the hedge fund TCS Capital Management in 2001, made his remarks amid growing uncertainty in the crypto industry about the durability of political backing for digital assets after U.S. President Donald Trump leaves office. Although Trump recently approved the creation of a Bitcoin Strategic Reserve, figures like JAN3 founder Samson Mow have voiced concerns that such support could fade under a future administration.
Semler, however, isn’t fazed. He has doubled down on Bitcoin, with Semler Scientific becoming the second publicly traded U.S. company to adopt a Bitcoin treasury strategy in May 2024.
On Thursday, Semler Scientific unveiled plans to significantly expand its Bitcoin holdings, aiming to grow from 4,449 Bitcoin to 105,000 over the next two and a half years. The company targets holding 10,000 Bitcoin by the end of 2025.
Semler views skepticism from traditional finance as a positive indicator.
“When you bet on something most people doubt—and you turn out to be right—the payoff is exponentially greater,” he said.
“I think we got great opportunities to show people that basically they’re missing out on a great opportunity,” he added.
Semler said he has built a career on going against the grain. “The best investments I’ve ever made have been in things that I’m kind of the lone voice crying in the wilderness,” he said.
“Those are the types of investments that have the highest returns,” he said.
“I love the negativity; I’m a contrarian investor.”
Surveys Reveal Growing Hedge Fund Interest in Bitcoin
In October 2024, a survey by the Alternative Investment Management Association and PwC found that 47% of hedge fund managers operating in traditional markets now have exposure to cryptocurrencies. That marks a steady increase from 29% in 2023 and 37% in 2022.
Earlier, in June 2021, Intertrust Global surveyed CFOs from 100 hedge funds around the world about their crypto investment plans. An overwhelming 98% said they expected their firms to allocate an average of 7.2% of their assets to cryptocurrencies by 2026.
