Eric Semler, chairman of Semler Scientific Inc., believes many hedge funds stay unconvinced about Bitcoin’s long-term viability past the Trump administration.
Key Takeaways:
- Eric Semler says many hedge funds doubt Bitcoin’s future past the Trump administration.
- Regardless of skepticism, Semler’s agency is aggressively constructing a BTC treasury, concentrating on 105,000 cash.
- Crypto publicity amongst hedge funds is rising, with practically half now holding digital property.
Talking in an interview with Natalie Brunell on Coin Tales, Semler mentioned conventional finance nonetheless views Bitcoin as a fleeting development that will not survive political transition.
“I feel that they assume it’s a fly-by-night idea and that it’s most likely going to, after the Trump administration, return down lots,” mentioned Semler, who additionally based TCS Capital Administration.
Trump’s Crypto Push Faces Uncertainty Past His Time period
His remarks come as debate grows over whether or not U.S. political help for crypto will endure previous President Trump’s time period.
Whereas Trump not too long ago endorsed a Bitcoin Strategic Reserve, figures like JAN3 CEO Samson Mow have warned that such initiatives may shortly unravel beneath a special administration.
Regardless of broader skepticism, Semler has gone in the wrong way. In Might, Semler Scientific turned solely the second U.S. public firm to undertake a Bitcoin treasury technique.
The agency at present holds 4,449 BTC and plans to ramp that as much as 105,000 BTC inside two and a half years, concentrating on 10,000 BTC by year-end.
For Semler, institutional doubt is a part of the chance. “If you’re betting on one thing that almost all doesn’t imagine in, and also you’re proper, you make a lot extra money,” he mentioned.
“I like the negativity; I’m a contrarian investor,” he added, noting that his most worthwhile investments got here when others had been dismissive. “These are the kinds of investments which have the very best returns.”
Whereas some hedge fund managers are nonetheless hesitant, the broader development suggests rising crypto publicity.
“We’re centered on turning into a powerhouse in #Bitcoin.”
New episode simply launched that includes Chairman Eric Semler and CFO Renae Cormier of Semler Scientific $SMLR.
Hear all in regards to the firm’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 by the Various Funding Administration Affiliation and PwC confirmed that 47% of hedge fund managers now maintain some degree of crypto publicity, up from 29% in 2023 and 37% in 2022.
Trying additional again, a 2021 Intertrust International survey of hedge fund CFOs confirmed that almost all anticipated to allocate 7.2% of their portfolios to crypto by 2026.
VanEck Warns BTC Treasury Technique Might Backfire
Only in the near past, VanEck’s head of digital asset analysis, Matthew Sigel, raised issues in regards to the Bitcoin treasury methods utilized by sure public corporations, suggesting that continued accumulation of BTC may quickly hurt shareholders greater than assist.
He particularly criticized using at-the-market (ATM) share issuance applications, warning that they will turn into dilutive when inventory costs strategy the corporate’s Bitcoin internet asset worth (NAV).
Sigel proposed a number of measures to stop worth erosion, together with pausing ATM applications if an organization’s inventory trades beneath 0.95x NAV for over 10 days.
He drew comparisons to previous failures within the crypto mining sector, the place extreme dilution and govt pay led to main shareholder losses.
For example, he cited Semler Scientific, a medical tech agency that entered the BTC house in 2024.
Regardless of buying 3,808 BTC, its inventory has fallen over 45%, and its mNAV has dropped to 0.82x.
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