Trump Opens 401(k) Access to Crypto — Altcoins May Benefit Most in the Short Term

TradingKey – On Friday, August 8, the crypto market surged nearly 4%, adding over $150 billion in net inflows after President Donald Trump signed an executive order allowing 401(k) retirement plans to invest in cryptocurrencies and other alternative assets.

Crypto Market Cap Trend – Source: CoinMarketCap

Following the announcement, the crypto market experienced significant volatility, as shown below:

• Total market cap jumped from $3.74 trillion to $3.89 trillion, hitting a 7-day high
• Bitcoin (BTC) rose nearly 2% to $116,615, reclaiming the $115K level
• Ethereum (ETH) surged over 6% to $3,904
• Ripple (XRP) gained 11%, Solana (SOL) rose 4%, and Dogecoin (DOGE) climbed 8%

Trump’s order, titled “Democratizing Access to Alternative Assets for 401(k) Investors,” directs the Department of Labor to revise ERISA rules to include digital assets, private equity, and real estate as qualified investment options.

The move opens the door to $12.5 trillion in retirement capital, nearly three times the size of the current crypto market. According to Bitwise’s Ryan Rasmussen, even a 1–10% allocation from 401(k) plans could inject $80–800 billion into crypto markets.

While Bitcoin and Ethereum are likely long-term beneficiaries due to their perceived stability, altcoins may see stronger short-term upside:

• BTC’s rally has slowed over the past month, prompting capital rotation into smaller-cap assets
• Altcoins are trading near cycle lows, offering higher upside potential
• Public companies are building crypto treasuries that include altcoins, not just BTC and ETH