Key Takeaways
- Eric Semler asserts most hedge fund executives remain skeptical about bitcoin's post-Trump future.
- Semler Scientific plans to increase its bitcoin holdings to 105,000 bitcoin by 2027.
- Recent surveys show nearly half of hedge funds now have some bitcoin exposure.
Eric Semler, chairman of Semler Scientific Inc. and founder of TCS Capital Management, says many hedge fund executives are skeptical about bitcoin’s prospects after President Donald Trump leaves office.
As Semler explained to Natalie Brunell on Coin Stories:
“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.”
Bitcoin confidence
Despite these doubts, Semler remains confident in bitcoin, highlighting his company’s decision in May 2024 to become the second US public firm to adopt a bitcoin treasury strategy.
On June 20, Semler Scientific announced plans to expand its bitcoin holdings from 4,449 bitcoin to 105,000 bitcoin by 2027, with a target of 10,000 bitcoin by the end of this year.
For current and historical data on Semler Scientific’s bitcoin holdings, see here.
Semler views the skepticism from traditional finance as a positive indicator, stating:
“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 added:
“I love the negativity; I’m a contrarian investor.”
Surveys indicate rising hedge fund bitcoin exposure
While Semler describes himself as a “lone voice crying in the wilderness,” surveys suggest growing hedge fund interest in bitcoin.
An October 2024 survey from the Alternative Investment Management Association and PwC found 47% of hedge fund managers trading in traditional markets have exposure to bitcoin and other digital assets.
In 2021, another survey indicated that 98% of hedge fund CFOs expected to allocate 7.2% of assets to bitcoin by 2026.
