- Executive order aims to add crypto to 401(k)s.
- Potential $800 billion market inflow.
- Affects Bitcoin, Ethereum primarily.
Crypto assets in 401(k) plans could lead to $800 billion in inflows if approved, based on a 1–10% hypothetical allocation of the current $8 trillion in US retirement assets, according to Bitwise’s Ryan Rasmussen. Anticipation builds ahead of Trump’s expected executive order endorsing this inclusion.
Ryan Rasmussen predicts substantial inflows if crypto assets gain approval for U.S. 401(k) plans. “If crypto assets comprise 1% to 10% of total 401(k) retirement account assets, the corresponding potential inflow would be $80 billion to $800 billion.” The anticipated executive order from President Trump in August 2025 could allow a small allocation in the market.
The action involves major players like Bitwise and CoinShares. Trump plans to reverse prior stances on retirement investments, hoping to expand available asset options.
Bitcoin and Ethereum are likely to see significant interest from this policy change. Historical examples show such moves can lead to price increases and market growth.
The executive order may create broader access to cryptocurrencies, potentially increasing institutional demand. Previous ETF launches serve as analogues, driving widespread adoption.
While the move could reshape retirement investing, actual implementation hinges on regulatory alignment among agencies. The Department of Labor, Treasury, and SEC have significant roles.
Historical patterns suggest that institutional demand could stabilize prices. Increased crypto allocation in 401(k)s might positively impact financial markets and spur broader regulatory advancements.
