U.S. $12 Trillion Retirement Funds, Gateway Opened for Cryptocurrency Investments

Cryptocurrency A to Z

Allowance for Alternative Asset Investments

Trump Signs Executive Order

Massive Capital Inflows Expected

Bitcoin Jumps 5%

Ethereum Up 20% in Three Days

President Donald Trump has signed an executive order permitting virtual asset investments within 401(k) defined contribution retirement plans. This has opened a pathway for funds totaling as much as $12 trillion (approx. ₩16,600 trillion) to flow into the cryptocurrency market.

On the 7th, President Trump signed an executive order enabling retirement funds to invest in cryptocurrencies, private equity, real estate, and other alternative assets. Immediately after, he directed the Department of Labor to treat cryptocurrencies the same as existing asset classes. David Sacks, White House AI and Cryptocurrency Policy Chief, stated, "Over 90 million workers will now be able to invest in various alternative assets, including cryptocurrencies, through their retirement plans," adding, "This will help enhance returns and diversify retirement portfolios."

The crypto market responded instantly. Bitcoin, which had fallen to $112,650 at one point this month, surged 5% to the $117,300 level immediately after Trump’s signature. Ethereum also soared nearly 20% in three days, peaking at $4,300 on the 10th. This favorable policy news is seen as a trigger for short-term buying.

Ryan Rasmussen, Head of Research at Bitwise, noted, "The size of U.S. retirement funds amounts to $12.5 trillion according to Bloomberg," adding, "If only 1% flows into the crypto market, that’s $8–12.5 billion, and if it’s 10%, that’s a fresh $1.25 trillion in investments." He further projected, "Bitcoin, Ethereum, and Solana—already launched as spot ETFs—will be the primary beneficiaries."

Experts advise that indirect investment such as ETFs is more appropriate for retirement funds than direct crypto purchases. Jeffrey Hirsch, editor of Stock Trader's Almanac, said, "Due to the risks of holding the underlying asset, investing via ETFs is suitable for cryptocurrencies." Jerry Schlichter, founding partner of Schlichter Bogard, also remarked, "Cryptocurrencies are highly volatile in the short term for direct purchase," emphasizing, "Retirement funds should primarily serve the purpose of ensuring a secure post-retirement life."

Doohyun Hwang, journalist at Bloomingbit cow5361@bloomingbit.io