President Donald Trump is set to sign an executive order allowing cryptocurrencies, private equity, and real estate to be included in 401(k) retirement plans, potentially surpassing the impact of last year’s spot Bitcoin ETF approval. This move could flood the crypto market with significant buy pressure, with over 100 million Americans holding 401(k) plans totaling about $12 trillion.

Even a modest 1% allocation to crypto in 401(k) plans could result in $120 billion in fresh inflows, while a 5% allocation could bring in a staggering $600 billion. These consistent, automated, and growing flows could have a more powerful structural impact on crypto markets than ETFs, according to Tom Dunleavy of Varys Capital.

The potential impact of 401(k) allocations on the crypto market is seen as a game-changer, with the possibility of creating a significant and consistent buying pressure that could dwarf the effects of spot Bitcoin ETFs. This shift could set a permanent floor for crypto prices and reshape market dynamics in a profound way.

Trump’s executive order aims to redefine and reevaluate guidance on alternative assets like crypto under the Employee Retirement Income Security Act of 1974. This move not only legitimizes crypto as a long-term asset class but also structurally embeds it into the largest capital engine in the U.S. economy, potentially reshaping price dynamics and volatility.

Read more at Yahoo Finance: Trump’s 401(k) crypto order could be bigger than spot ETFs