President Donald Trump is poised to sign an executive order permitting investments in Bitcoin and other cryptocurrencies through the $9 trillion U.S. retirement market, according to White House announcements. The directive reverses previous Department of Labor policies discouraging crypto in 401(k) plans, enabling major asset managers like Blackstone, Apollo, BlackRock, and Vanguard to develop retirement products incorporating digital assets.
The order, expected to take effect pending regulatory adaptations, also allows investments in gold and private equity. This marks a pivotal shift in retirement strategies, potentially triggering significant capital inflows into cryptocurrencies. Analysts anticipate heightened demand for Bitcoin specifically, with Ethereum and other altcoins also likely to benefit from broader institutional interest.
While the move promises portfolio diversification, industry experts caution about risks including liquidity constraints and higher fees compared to traditional assets. Historical parallels suggest potential price surges similar to post-ETF approval trends, though market reactions remain contingent on implementation details. A White House statement emphasized Trump's commitment to "restoring prosperity for everyday Americans", while the Financial Times described it as a "radical shift" in savings management.