Crypto in 401(k)s: Bitcoin tops $116K as Trump executive order opens retirement plans to crypto and other alternative assets

The cryptocurrency market received a jolt on Thursday after news broke that President Donald Trump is preparing to sign an executive order that could bring bitcoin and other digital assets into millions of Americans’ 401(k) accounts. The move marks a major shift in how retirement plans might treat alternative assets—and the market wasted no time reacting.

Bitcoin climbed about 1%, reclaiming the $116,000 level for the first time since July 31. Ether jumped more than 4%, hitting a one-week high. Stocks tied to crypto followed the surge. Coinbase rose 2% in premarket trading, Circle gained over 3%, Bitmine Immersion moved up 4%, and Sharplink Gaming spiked 7%.

Trump’s Executive Order to Open 401(k)s to Cryptocurrencies

The executive order, confirmed by CNBC and first reported by Bloomberg, is set to allow 401(k) accounts to invest in a broader range of assets—including private equity, real estate, and digital currencies.

“President Donald Trump is set to sign an executive order that would allow 401(k) accounts to invest in alternative assets, including private equity, real estate and digital assets, CNBC has confirmed.”

Trump is expected to sign the order today. It also directs regulatory bodies like the SEC to facilitate easier access to these alternative investments. The goal is to broaden the investment choices available to retirement savers, potentially reshaping how Americans plan for their financial futures.

It’s the latest push by the Trump administration to position the U.S. as a global hub for crypto innovation. Just last month, Trump signed the GENIUS Act into law, officially bringing stablecoin legislation into the books—the first federal crypto law of its kind.

Fidelity has already taken a step in this direction, offering bitcoin allocation in 401(k) plans, though adoption has been slow due to employer hesitation. That could shift dramatically if the executive order removes some of the regulatory bottlenecks.

For years, crypto investors have talked about 401(k) access as a kind of holy grail for mass adoption. With over $43 trillion parked in U.S. retirement accounts, the potential influx of long-term capital could reshape how digital assets are viewed in traditional finance.

Galaxy CEO Michael Novogratz summed it up this way on CNBC’s Squawk Box: “When it becomes commonplace – when you can do it at the place you’ve already been doing business with, if it’s Fidelity or T. Rowe Price or whoever it is – you just pull more people into this ecosystem.”

If this order is approved, retirement portfolios may start to look a little more digital. The financial establishment has been slow to warm up to crypto, but Trump’s latest move could make it hard to ignore.

Crypto’s Wild Ride: Volatility Still a Concern for Retirement Accounts

While opening up 401(k) plans to alternative assets might sound like a step forward, the idea of including crypto isn’t without concern. Volatility remains a major sticking point, and financial advisors have long debated how—or whether—digital assets belong in long-term, risk-managed portfolios. Bitcoin’s recent rally has boosted enthusiasm, but critics warn that tying such a volatile asset to retirement savings could pose unnecessary risks for everyday investors. Whether institutions and plan sponsors will fully embrace the shift is still uncertain.