Eric Semler embraces his role as the “lone voice in the wilderness” when it comes to supporting Bitcoin, even as the majority of hedge fund executives dismiss it as a fleeting or unreliable idea. He continues to advocate for the cryptocurrency, despite widespread skepticism among his peers.
Eric Semler, who serves as the chairman of the healthcare technology company Semler Scientific Inc., notes that a large number of his fellow hedge fund executives doubt Bitcoin’s long-term prospects after U.S. President Donald Trump exits office. Despite their concerns, Semler remains confident in Bitcoin’s resilience beyond the current political climate.
“I believe they view it as a fleeting idea, expecting it to decline significantly once the Trump administration concludes,” Eric Semler said during a Thursday interview with Coin Stories host Natalie Brunell.
Semler Believes Bitcoin Is a Bold Long-Term Bet
Semler, the founder of hedge fund TCS Capital Management established in 2001, shared his remarks as doubts grew within the crypto sector regarding the longevity of political backing for digital assets once President Donald Trump’s administration concludes. Although Trump recently approved a Strategic Bitcoin Reserve, figures like JAN3 founder Samson Mow have expressed concern that future administrations might withdraw such support.
However, the issue does not appear to trouble Semler, who has reinforced his commitment to the asset. In May 2024, Semler Scientific adopted a Bitcoin treasury strategy, becoming the second publicly listed U.S. company to take this step.
On Thursday, Semler Scientific revealed its intention to expand its Bitcoin reserves by nearly 23-fold over the next two and a half years, aiming to increase from 4,449 to 105,000 Bitcoin. The company targets a total holding of 10,000 Bitcoin by the conclusion of this year.
Semler sees skepticism within the traditional finance sector as a positive sign for Bitcoin’s potential growth.
Semler explained that investors can earn significantly higher returns when they bet on something the majority doubts and ultimately prove to be right.
He added that many people are overlooking a great opportunity, and this moment provides a valuable chance to show them what they are missing.
Semler mentioned that he built his career by consistently taking contrarian positions. He explained that he made his most successful investments in areas where he stood alone and voiced support when few others did.
He explained that those types of investments typically generate the highest returns.
I love the negativity; I’m a contrarian investor.
Hedge Funds Increasingly Embrace Bitcoin, Surveys Reveal
A survey conducted in October 2024 by the Alternative Investment Management Association and PwC revealed that exposure to cryptocurrencies had been taken on by 47% of hedge fund managers operating in traditional markets.
In 2023, 29% of hedge fund managers held exposure to crypto assets, while approximately 37% reported such exposure during 2022.
In June 2021, a global survey conducted by Intertrust Global gathered responses from chief financial officers representing 100 hedge funds regarding their plans to invest in crypto assets.
Approximately 98% of the surveyed CFOs anticipated that their hedge funds would allocate 7.2% of their assets to cryptocurrencies by 2026.
