The inclusion of cryptocurrency in US retirement plans could lead to a Bitcoin price surge above $200,000 by 2025, says Bitwise’s head of European research. President Trump’s executive order opened the door for crypto in 401(k) plans, potentially bringing in $122 billion in new capital. A modest 1% allocation could drive the asset’s price to $200,000 by year-end.

401(k) portfolio managers are likely to recommend a 2.5% or 3% Bitcoin allocation, hinting at significant inflows. The first Bitcoin investments from retirement plans may arrive this fall, coinciding with expected Fed interest rate cuts. Markets predict an 83% chance of a rate cut on September 17, potentially propelling Bitcoin to new highs.

Major retirement plan providers like BlackRock and Fidelity have an economic incentive to offer Bitcoin ETF exposure. BlackRock’s iShares Bitcoin Trust and Fidelity’s ETF hold significant market shares. The SEC is collaborating with the Trump administration to allow retail investors access to private equity, including crypto assets, under appropriate safeguards.

Read more at Cointelegraph: 401(k) Crypto Retirement plans ‘bigger’ than Bitcoin ETF approval: analyst