Bitcoin to receive capital inflow from American pension funds

President Trump’s executive order may open the door for billions in retirement funds to enter the crypto market. Experts say Bitcoin is likely to lead the way in regulated pension products.

Executive order brings crypto into retirement accounts

U.S. President Donald Trump has signed an executive order allowing Americans to include crypto in their 401(k) retirement plans and similar defined-contribution schemes. The Department of Labor will re-evaluate existing restrictions on alternative investments such as digital assets, private equity and real estate.

According to Q1 2025 data, total U.S. retirement assets reached $43.4 trillion, with $8.7 trillion in 401(k) plans. This marks a significant opportunity for crypto integration into traditional finance.

Industry leaders react to the policy shift

Bitwise CIO Matt Hougan said this shift could introduce a “steady bid” from retirement funds, improving market stability. He emphasized Bitcoin’s past decade performance and its strong positioning going forward.

Crypto Council for Innovation CEO Ji Hun Kim praised the decision as a step toward cementing digital assets within the U.S. financial ecosystem. Abdul Rafay Gadit from ZIGChain highlighted its role in scaling tokenized investment infrastructure.

Concerns remain despite optimism

0G Labs CEO Michael Heinrich called the order a “watershed moment” but cautioned its success hinges on execution. Key questions include which tokens qualify and how custody will be managed.

Joshua Krüger from dEURO believes Bitcoin will be the first to enter regulated retirement offerings, thanks to its institutional acceptance. However, he added that altcoins may benefit only later once they achieve structural maturity.

Gold advocate Peter Schiff expressed concern, arguing the order could worsen America’s retirement savings crisis. He warned that allowing crypto in retirement plans may expose savers to unnecessary volatility and risk.