Recently, there has been significant news in the cryptocurrency industry - former US President Trump has signed an order allowing 401 (k) retirement funds to invest in Bitcoin and other cryptocurrency assets. This change may completely reshape the funding structure, institutional status, and future development direction of the cryptocurrency market.


 

But before delving into the impact of this policy, let's start with a fundamental question:
 

What is 401 (k)?
 

401 (k) is a retirement savings plan established by the US government that allows office workers to invest a portion of their salary in a long-term investment account and withdraw it upon retirement. This fund is usually jointly allocated by individuals and employers, and enjoys tax benefits. It is the most important retirement financial tool for Americans.
 

Currently, there are approximately 90 million people in the United States who have 401 (k) accounts, with cumulative total assets exceeding $12.5 trillion. This huge amount of funds used to be limited to investing in traditional assets such as index funds, large blue chip stocks, bonds, etc.

Simply put, 401 (k) is the safety net for the future life of the American middle class.
 

What changes has Trump made?
 

In August 2025, Trump signed an executive order to relax investment restrictions on 401 (k) funds, allowing for the first legal investment of these funds in "alternative assets," including:

Cryptocurrencies (such as Bitcoin, Ethereum)
 

private equity
 

Real estate funds (REITs)
 

The core of this policy change is that retirement funds can now enter the cryptocurrency market.
 

This is not only a technological openness, but also an institutional recognition. Cryptocurrency is no longer just an asset for young people or risk enthusiasts, but has been officially included as one of the legal allocation options in the US retirement financial system.
 

The profound impact on the cryptocurrency market
 

1. Potential funds may reach hundreds of billions of dollars
 

Even if only 1% of 401 (k) funds are allocated to the cryptocurrency market, it could bring in billions of dollars in incremental funding. These funds belong to long-term, stable, and low-frequency capital, and may become the strongest fundamental buying support for the Bitcoin market.
 

2. Financial institutions will accelerate the launch of compliant products
 

As the 401 (k) market opens up to cryptocurrency, traditional financial institutions such as BlackRock and Fidelity will be more active in launching retirement specific Bitcoin ETFs, blockchain funds, and robust allocation products. This will drive a rapid upgrade in the product structure and compliance standards of the entire cryptocurrency market.
 

3. The institutional status of Bitcoin has been clarified
 

When Bitcoin can be included in retirement accounts, its asset status will shift from a "high volatility alternative asset" to a "configurable institutional asset". In the future, corporate financial reports, national reserves, and pension systems may officially consider Bitcoin.
 

Doubt and risk coexist
 

Of course, this policy has also sparked a lot of controversy:
 

Excessive price fluctuations: Bitcoin has experienced multiple price retracements of over 70%, raising doubts about its suitability for long-term holding by retirees.
 

Policy motivation and interest linkage: Trump himself has been involved in the cooperation between cryptocurrency issuance and trading platforms, and some people question whether there is any benefit transfer behind the policy.
 

The regulatory system is not yet mature: the regulation of encrypted assets in the United States is still undergoing continuous adjustments, the system is not yet stable, and the policy direction may still be reversed.
 

Opportunity window for cryptocurrency practitioners and investors
 

The signal of this policy is very clear: institutional funds are beginning to move towards the crypto world.
 

For entrepreneurs, this is an opportunity for product structure and financing model innovation; For individual investors, this means it's time to rethink your logic of cryptocurrency asset allocation.
 

The structure of the encryption industry is being layered——
 

Some still speculate on memes and engage in short-term arbitrage;
 

The other part has entered the stage of long-term investment, compliant products, and institutional platforms.
 

Which side you stand on will determine your position in the future capital restructuring.
 

Conclusion: The entry of retirement funds is not only a revolution, but also a test
 

This may be the first time that the cryptocurrency market has truly welcomed "mainstream institutional funds". It is no longer short-term hot money, but a large structural fund related to the redistribution of national wealth and the financial security of the middle class.
 

Bitcoin's future is not just an asset, but also a new global consensus on value. And this time, it was included in the system.
 

If you still believe that the crypto world is just a speculative market, then you may have missed its most important turning point.