U.S. President Donald Trump expected signing of an executive order allowing Americans to add Bitcoin and Ethereum to their 401(k) retirement accounts on Thursday sent crypto markets higher, and analysts believe the news will likely continue to bolster the asset.
The order will lead to billions of dollars in investments in digital assets, Varys Capital Head of venture Tom Dunleavy told Decrypt.
“Every two weeks when most Americans receive their paycheck from their employer, a portion of that–usually between 1% and 10% – is allocated to their 401(k),” Dunleavy said. “Usually that’s something like 60% stocks, 40% bonds. If suddenly that becomes 5% crypto in that allocation, you can see billions coming into the asset class over the next few years.”
According to Dunleavy, the consistent flows will also help create a floor, or a more stable baseline price.
The order would allow individuals to hold alternative investments like private equity, real estate, and cryptocurrency, according to a Bloomberg report. Bitcoin jumped on the news to trade at $116,305, near a 1% gain over the past 24 hours, while Ethereum was changing hands at $3,816, up nearly 4% over the same period.
“The near-term impact of Trump’s 401(k) executive order is that it sends another message to investors that crypto’s regulatory awakening is here to stay.” Bitwise Head of Research Ryan Rasmussen told Decrypt. “That’s clearly pushing the market higher.”
A 401(k) is a popular retirement account and investment vehicle used by Americans that accounts for trillions of dollars in assets with individuals often contributing on a regular basis via their employers or paychecks.
Crypto in 401ks is WAY WAY BIGGER news than the ETFs
In the US, roughly 100 million Americans have a retirement investment vehicle known as a 401(k). Every 2 weeks, a portion of their paychecks are routed directly into purchasing a mixture of stocks and bonds. On autopilot. No… https://t.co/XRWf1NKSSw
— Tom Dunleavy (@dunleavy89) August 7, 2025
“If crypto captures 1% of 401(k) assets, that’s $125 billion of new capital entering the space, with a steady flow thereafter. A 3% capture would be $375 billion, and a 5% capture would be $625 billion. That’s a lot of long-term, sustained buying pressure,” Rasmussen said about the opportunity present for crypto.
“In the medium- and long-term, the EO and response from 401(k) plan providers will channel tens (and possibly hundreds) of billions in capital into crypto assets,” he said.
Both analysts said that Bitcoin and Ethereum stand to benefit the most from the announcement, highlighting by their availability with existing exchange traded products which have received billions in inflows from investors this year.
“Those crypto assets already exist in an ETF and therefore will be the easiest funds for 401(k) plan providers to underwrite and add to their investment menus,” Rasmussen said.
But other crypto assets could benefit in the future, he said, adding that when more crypto ETFs come to market, the assets within them will benefit similarly to Bitcoin and Ethereum.
Dunleavy highlighted Solana could closely follow if it gains an ETF.
Multiple Solana ETFs applications, including some with staking, still require approval from the SEC before becoming available to investors, though some analysts believe their approval by year’s end is a “near lock.”
Solana is up 0.5% in the last 24 hours, now trading at $169.44 and 42% off its January all-time high of $293.31. Predictors on Myriad Markets give it just 30% odds of making a new all-time high in 2025.
Both analysts’ remarks were similar to Bitcoin evangelist and Galaxy Digital founder Mike Novogratz who said in a CNBC interview Thursday that the Trump order would also lead to huge sums of capital entering crypto markets.