A Trump order opens 401(k) retirement plans to Bitcoin investments.Exchanges\u2019 Bitcoin reserves have fallen to a seven-year low.Companies now hold nearly 5% of Bitcoin\u2019s total supply in their treasuries.<\/p>\n
Retirement savers in the US will soon be able to passively invest in Bitcoin for their nest eggs. <\/p>\n
President Donald Trump on Thursday signed an executive order<\/a> directing the Labor Department to make it easier for private equity, real estate, cryptocurrencies, and other alternative assets to be included in 401(k) retirement plans.<\/p>\n It could channel fresh flows of billions of dollars into digital assets via regulated investment products like spot Bitcoin exchange-traded funds.<\/p>\n The roughly $8 trillion held in 401(k) accounts, according to 2024 estimates by Bitwise, is one of the largest untapped markets for crypto exposure. Bloomberg estimates<\/a> this number today to be even higher \u2014 around $12.5 trillion.<\/p>\n While most portfolios remain concentrated in stocks and bonds, the policy shift opens the door for plan sponsors to offer funds linked to Bitcoin and other private assets.<\/p>\n Even a modest allocation could have a market impact. Bitwise\u2019s Head of Research, Ryan Rasmussen, noted<\/a> that just a 3% allocation of 401(k) assets to crypto would amount to about $240 billion in inflows.<\/p>\n When factoring in its 60% market dominance<\/a>, this equates to around $144 billion into Bitcoin alone.<\/p>\n Supply crunch<\/p>\n Those sums would be chasing a market where the liquid Bitcoin supply is already feeling a squeeze.<\/p>\n Data from analytics firm CryptoQuant show that Bitcoin reserves<\/a> on centralised exchanges have fallen to about 2.5 million, their lowest level<\/a> in about seven years.<\/p>\n At current prices, that\u2019s only $300 billion worth.<\/p>\n If retirement-plan demand materialises through products like BlackRock\u2019s iShares Bitcoin Trust<\/a>, issuers will need to secure the underlying coins to cover fresh investments.<\/p>\n And ETFs aren\u2019t the only competitor.<\/p>\n This also comes amid a growing trend of aggressive corporate treasury buying.<\/p>\n Firms such as Strategy<\/a> and Japan\u2019s Metaplanet<\/a> have been making large-scale Bitcoin purchases for their balance sheets, often several times a month. <\/p>\n Data from Bitcoin Treasuries shows 164 public and private companies now hold close to 1 million Bitcoin<\/a> worth over $116 billion, approaching 5% of the total max supply. <\/p>\n