Eric Semler: Hedge Funds Doubt Bitcoin’s Future After Trump
Eric Semler: Hedge Funds Doubt Bitcoin’s Future After Trump
Eric Semler, chairman of healthcare tech firm Semler Scientific Inc., says many hedge fund executives remain skeptical of Bitcoin’s long-term viability—especially once former U.S. President Donald Trump is no longer in power.
“They think it’s a fly-by-night concept and that it will likely collapse after the Trump administration,” Semler said in an interview on the Coin Stories podcast with Natalie Brunell.
Semler explained that he’s comfortable being a contrarian, often finding value in assets that the traditional financial sector initially overlooks.
Semler Believes Bitcoin Is a Major Long-Term Play
Semler, who founded hedge fund TCS Capital Management in 2001, made his remarks amid rising concerns in the crypto space that Bitcoin’s political support may fade under future administrations.
Despite those concerns, Semler has doubled down. In May 2024, Semler Scientific became the second U.S.-listed company to adopt a Bitcoin treasury strategy.
Most recently, the company announced plans to increase its holdings from 4,449 BTC to 105,000 BTC over the next two and a half years, aiming to reach 10,000 BTC by the end of 2025.
“When you bet on something the majority doubts, and you’re right—you make much more money,” Semler noted.
He described his approach as deliberately contrarian:
“The best investments I’ve ever made were the ones where I was the lone voice in the wilderness,” he said. “I love the negativity—I’m a contrarian investor.”
Surveys Reveal Hedge Funds Are Slowly Embracing Bitcoin
Despite some ongoing skepticism, institutional adoption of digital assets is rising.
An October 2024 survey by the Alternative Investment Management Association (AIMA) and PwC revealed that 47% of traditional hedge fund managers now have some crypto exposure—up from 29% in 2023 and 37% in 2022.
Going further back, a 2021 survey by Intertrust Global found that 98% of hedge fund CFOs expected to allocate 7.2% of their portfolios to crypto by 2026.
These trends point to a broader shift in institutional thinking, even if high-level skepticism persists.
