Eric Semler, chairman of Semler Scientific Inc., has expressed concerns that a significant number of hedge funds harbor doubts regarding Bitcoin’s sustainability after the Trump administration.
Key Insights:
Semler highlights a prevailing skepticism among hedge funds about Bitcoin’s future post-Trump administration.
Despite this skepticism, his firm is actively expanding its Bitcoin treasury, aiming for a total of 105,000 coins.
The proportion of hedge funds investing in cryptocurrency is on the rise, with nearly half now incorporating digital assets into their portfolios.
In a recent interview with Natalie Brunell on Coin Stories, Semler remarked that traditional financial institutions often perceive Bitcoin as a passing fad that may falter during shifts in political power. “I think that they think it is a fly-by-night concept and that it is probably going to, after the Trump administration, go back down a lot,” he articulated. Semler is also known for founding TCS Capital Management.
Uncertain Political Support for Crypto After Trump
His comments underscore the ongoing debate about the future of U.S. political backing for cryptocurrencies beyond President Trump’s presidency.
Recently, Trump has shown support for initiatives like a Bitcoin Strategic Reserve, but industry figures, such as JAN3 CEO Samson Mow, have cautioned that such initiatives could collapse under a new administration.
Nevertheless, Semler continues to defy the prevailing skepticism. In May, Semler Scientific became the second U.S. public company to adopt a Bitcoin treasury strategy.
The firm currently holds 4,449 BTC and has plans to scale up its holdings 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, the hesitance from institutional investors presents an opportunity. “When you’re making a bet on something that the majority doesn’t believe in, and you’re right, you make so much more money,” he remarked. “I love the negativity; I’m a contrarian investor,” he continued, reflecting on how his most lucrative investments often come when others are dismissive. “Those are the types of investments that have the highest returns.”
While some hedge fund managers remain cautious, a wider trend indicates increasing crypto engagement.
“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 presently have some form of crypto exposure, marking an increase from 29% in 2023 and 37% in 2022.
Looking further back, a 2021 Intertrust Global survey indicated that nearly all hedge fund CFOs anticipated allocating approximately 7.2% of their portfolios to cryptocurrencies by 2026.
Concerns About Bitcoin Treasury Strategies
Recently, Matthew Sigel, head of digital asset research at VanEck, voiced challenges regarding the Bitcoin treasury strategies employed by certain public firms, arguing that ongoing accumulation of Bitcoin could potentially be detrimental to shareholders.
Sigel criticized the use of at-the-market (ATM) share issuance programs, cautioning that such strategies could dilute shareholder value when stock prices approach a company’s Bitcoin net asset value (NAV).
He proposed several preventive measures against value degradation, including suspending ATM programs if a company’s stock trades below 0.95x NAV for more than ten days.
Sigel drew parallels to past failures in the crypto mining sector, where excessive dilution and high executive compensation led to significant shareholder losses.
He pointed to Semler Scientific, a medical technology company that ventured into the Bitcoin space in 2024, acquiring 3,808 BTC. However, its stock has since experienced a decline of over 45%, with its mNAV decreasing to 0.82x.
The article titled “Will Bitcoin Survive Without Trump? Hedge Funds Aren’t Convinced, Says Semler” originally appeared on Finance Newso.
