Why Trump’s 401(k) Crypto Push Could Eclipse Bitcoin ETFs
The post Why Trump’s 401(k) Crypto Push Could Eclipse Bitcoin ETFs appeared on BitcoinEthereumNews.com. ETFs (exchange-traded funds) may have opened the door for crypto to Wall Street, but the 401(k) channel could blow it wide open. Following the policy shift to open 401(k)s to crypto, financial experts believe resultant flows could dwarf those into ETFs, potentially unlocking hundreds of billions in sustained, autopilot demand. 401(k) Crypto Investment Inflows Could Far Outpace Bitcoin ETFs The US 401(k) system holds roughly $12 trillion in assets, with $50 billion in fresh capital flowing every two weeks. Traditionally, this money is funneled into stock and bond allocations through pre-set investment plans that most Americans rarely adjust. Now, crypto could be added to that mix. “Crypto in 401(k)s is WAY WAY BIGGER news than the ETFs…These aren’t one-time flows…401ks + DATs [Target Date Funds] with at the money shelves put a ridiculous floor of crypto going forward,” wrote Tom Dunleavy, head of venture at Varys Capital. Even a modest allocation could transform the market. At just 1%, the sector would see $120 billion in recurring inflows. This means a 5% allocation could translate into $600 billion, fed by payroll deductions, month after month. Meanwhile, the Bitcoin ETF narrative has dominated headlines this year, with products like BlackRock’s IBIT seeing record inflows. However, as institutional players choose to buy, ETFs rely on investor discretion. On the other hand, 401(k)s operate differently, automating buying based on long-term allocations, typically reviewed annually. “This is a HUGE driver of the equity market run and resilience over the past 20 years…401(k)s just keep buying,” Dunleavy added. With Trump’s order expanding retirement access to private assets, including crypto, analysts say this could be the true institutional unlock for the space. “People don’t realize yet how big today’s news has been for crypto. This will be seen as the watershed moment for mainstream adoption, much more…
The post Why Trump’s 401(k) Crypto Push Could Eclipse Bitcoin ETFs appeared on BitcoinEthereumNews.com.
ETFs (exchange-traded funds) may have opened the door for crypto to Wall Street, but the 401(k) channel could blow it wide open. Following the policy shift to open 401(k)s to crypto, financial experts believe resultant flows could dwarf those into ETFs, potentially unlocking hundreds of billions in sustained, autopilot demand. 401(k) Crypto Investment Inflows Could Far Outpace Bitcoin ETFs The US 401(k) system holds roughly $12 trillion in assets, with $50 billion in fresh capital flowing every two weeks. Traditionally, this money is funneled into stock and bond allocations through pre-set investment plans that most Americans rarely adjust. Now, crypto could be added to that mix. “Crypto in 401(k)s is WAY WAY BIGGER news than the ETFs…These aren’t one-time flows…401ks + DATs [Target Date Funds] with at the money shelves put a ridiculous floor of crypto going forward,” wrote Tom Dunleavy, head of venture at Varys Capital. Even a modest allocation could transform the market. At just 1%, the sector would see $120 billion in recurring inflows. This means a 5% allocation could translate into $600 billion, fed by payroll deductions, month after month. Meanwhile, the Bitcoin ETF narrative has dominated headlines this year, with products like BlackRock’s IBIT seeing record inflows. However, as institutional players choose to buy, ETFs rely on investor discretion. On the other hand, 401(k)s operate differently, automating buying based on long-term allocations, typically reviewed annually. “This is a HUGE driver of the equity market run and resilience over the past 20 years…401(k)s just keep buying,” Dunleavy added. With Trump’s order expanding retirement access to private assets, including crypto, analysts say this could be the true institutional unlock for the space. “People don’t realize yet how big today’s news has been for crypto. This will be seen as the watershed moment for mainstream adoption, much more…
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