Trump's New Policy: The Impact of Opening 401(k) Retirement Plans to Cryptocurrency Investments
On August 7, 2025, Trump signed an executive order allowing 401(k) retirement plans to invest in cryptocurrencies, private equity, and other alternative assets, marking a significant transformation in the U.S. retirement investment market.
This policy aims to break traditional restrictions and introduce high volatility into the $12.5 trillion 401(k) market, but... high-return asset classes like Bitcoin and Ethereum.
Impact on the Crypto Market
- Capital Inflow: If 401(k) plans allocate only 3% to cryptocurrencies, it could bring in over $300 billion in new funds, far exceeding current ETF demand.
- Price Boost: After the announcement, Ethereum rose over 7.3% within 24 hours, and Bitcoin also broke through $117,000. The market expects institutional funds to support crypto assets in the long term.
