News: Trump signs executive order, breaking the ice for pension investments in cryptocurrencies!
According to the latest report from Bloomberg, U.S. President Trump will sign a historic executive order this week, allowing $9 trillion in 401(k) retirement funds to invest in cryptocurrencies, gold, and private equity as alternative assets! This policy will completely break the restrictions on crypto assets imposed during the Biden administration, marking the official opening of the world's largest pension market to digital assets.
Policy Details: How will $9 trillion in funds flow in?
Core Content of the Executive Order: Trump will instruct the U.S. Department of Labor and the Securities and Exchange Commission (SEC) to reassess the regulatory framework to clear obstacles for 401(k) plans to include cryptocurrencies and other alternative assets. Employers can choose whether to include digital assets like Bitcoin and Ethereum in their employees' retirement account investment options.
Funding Scale Calculation: The current total size of the U.S. 401(k) market is $8.9 trillion. If only 10% of the funds flow into the crypto market, it will directly inject $870 billion, equivalent to 22.2% of the current total market capitalization of global cryptocurrencies!
Technical Support Upgrades: Institutions like Fidelity and State Street have launched retirement account products that support cryptocurrencies, while private equity giants like Blackstone and Apollo are collaborating with 401(k) platforms for layouts.
Market Reaction: ETH surged 18% in a single day, and institutional capital frenzy has begun!
Ethereum's Leading Logic: Although the policy does not explicitly limit the investment ratio, the market generally expects that after the approval of the Bitcoin ETF, institutions will lay out through compliant products like Ethereum ETFs. The ETH price broke $3,800 on the day, with a 24-hour increase of 18%.
On-chain Data Verification: Coinbase data shows that institutional wallet addresses increased their holdings of crypto assets by over $1.2 billion within 2 hours of the policy announcement, with Ethereum accounting for 37%.
Derivatives Market Heats Up: The CME Ethereum futures open interest surged by 23%, with leveraged funds betting on ETH breaking $5,000.
Experts Warn: Pension entry is a double-edged sword!
Supporters: MFA Association President Bryan Corbett stated, "This move will allow ordinary investors to share in the digital economy's dividends, increasing the diversity of 401(k) asset allocation by more than 30%."
Opponents: Johns Hopkins University Professor Jeffrey Hooke warned, "Cryptocurrencies lack liquidity and have opaque valuations. Pensions, as the 'lifesaving money' of ordinary people, risk systemic issues if recklessly invested."
Regulatory Game: Although the U.S. Department of Labor has lifted the restrictions from the Biden era, it requires 401(k) managers to pass a 'safe harbor' review to ensure investment options comply with fiduciary duties.
Historic Opportunity: The crypto market may welcome trillion-level incremental funds!
If the policy is ultimately implemented, the crypto market will face three major changes:
Institutional Dominance Era: The entry of long-term funds like pensions will reduce market volatility, and Bitcoin may gradually replace gold as a 'digital reserve asset.'
Ethereum Ecosystem Explosion: As the cornerstone of DeFi and smart contracts, ETH may be included in more institutional portfolios, pushing its market value closer to Bitcoin.
Regulatory Framework Improvement: The U.S. House of Representatives has simultaneously passed the (GENIUS Act), providing a legal path for stablecoins and crypto ETFs, accelerating the integration of traditional finance and digital assets.
Risk Warning: Cryptocurrencies have high volatility, and pension investments should be strictly limited (recommended not to exceed 5%). Investors should be wary of short-term speculation risks and pay attention to policy rollout details and institutional holding reports.
Conclusion: This marriage between pensions and cryptocurrencies is both a milestone for the Trump administration's push for financial innovation and a restructuring of the global asset allocation pattern. Regardless of the controversy, the potential influx of $9 trillion has positioned Ethereum and the entire crypto market at a historical turning point! Explosive policy! The U.S. $9 trillion pension may enter the crypto market, the policy driver behind ETH's surge!
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