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Eric Semler, chairman of Semler Scientific Inc., asserts that numerous hedge funds remain skeptical regarding Bitcoin’s long-term sustainability following the Trump administration.
Key Takeaways:
- Eric Semler indicates that many hedge funds are uncertain about Bitcoin’s prospects beyond the Trump administration.
- In spite of this skepticism, Semler’s company is actively developing a BTC treasury, aiming for 105,000 coins.
- Hedge funds are increasingly gaining exposure to crypto, with nearly half now possessing digital assets.
In an interview with Natalie Brunell on Coin Stories, Semler remarked that traditional finance continues to perceive Bitcoin as a temporary phenomenon that may not endure through political changes.
“I believe they view it as a transient idea and that it will likely decline significantly after the Trump administration,” stated Semler, who is also the founder of TCS Capital Management.
Trump’s Crypto Initiatives Face Doubts Beyond His Presidency
His comments arise amid growing discussions about whether U.S. political backing for crypto will persist after President Trump’s tenure.
While Trump has recently supported a Bitcoin Strategic Reserve, figures like JAN3 CEO Samson Mow have cautioned that such efforts could quickly fall apart under a different administration.
Despite widespread skepticism, Semler has taken a contrary approach. In May, Semler Scientific became the second U.S. public company to implement a Bitcoin treasury strategy.
The firm currently possesses 4,449 BTC and intends to increase that to 105,000 BTC within two and a half years, with a goal of reaching 10,000 BTC by the end of the year.
For Semler, institutional skepticism represents an opportunity. “When you’re betting on something that most do not believe in, and you succeed, the financial rewards are significantly greater,” he remarked.
“I appreciate the negativity; I’m a contrarian investor,” he continued, noting that his most lucrative investments occurred when others were dismissive. “Those are the types of investments that yield the highest returns.”
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While some hedge fund managers remain cautious, the overall trend indicates an increase in crypto exposure.
“We’re focused on becoming a powerhouse in #Bitcoin.”
New episode just released featuring Chairman Eric Semler and CFO Renae Cormier of Semler Scientific $SMLR.
Hear all about the company’s plans to aggressively stack Bitcoin and climb the leaderboard of public Bitcoin… pic.twitter.com/Rk0O4uab82— Natalie Brunell
(@natbrunell) June 19, 2025
A 2024 survey conducted by the Alternative Investment Management Association and PwC revealed that 47% of hedge fund managers now have some degree of crypto exposure, an increase from 29% in 2023 and 37% in 2022.
Looking further back, a 2021 Intertrust Global survey of hedge fund CFOs indicated that nearly all anticipated allocating 7.2% of their portfolios to crypto by 2026.
VanEck Cautions BTC Treasury Strategy May Be Detrimental
Recently, VanEck’s head of digital asset research, Matthew Sigel, expressed concerns regarding the Bitcoin treasury strategies employed by certain public companies, suggesting that ongoing accumulation of BTC could soon be more harmful than beneficial for shareholders.
He specifically criticized the implementation of at-the-market (ATM) share issuance programs, warning that they can lead to dilution when stock prices approach the company’s Bitcoin net asset value (NAV).
Sigel proposed various measures to avert value erosion, including suspending ATM programs if a company’s stock trades below 0.95x NAV for more than 10 days.
He drew parallels to previous failures in the crypto mining industry, where excessive dilution and executive compensation resulted in significant shareholder losses.
As an illustration, he referenced Semler Scientific, a medical technology firm that entered the BTC market in 2024.
Despite acquiring 3,808 BTC, its stock has declined over 45%, and its mNAV has fallen to 0.82x.
The post Will Bitcoin Survive Without Trump? Hedge Funds Aren’t Convinced, Says Semler appeared first on Cryptonews.
