Trump’s Crypto Order Boosts Bitcoin Futures, Triggers Unwind

President Trump signed an executive order allowing crypto assets in 401(k) accounts. This marks a significant shift in the inclusion of digital assets in retirement funds, affecting both participants and financial markets.

The order stated cooperation between the Labor Department and other agencies like the SEC to align regulations for crypto inclusion. This move opens Bitcoin and other cryptocurrencies to new institutional demand.

“This move effectively opens access to Bitcoin and other cryptocurrencies for retirement investors.” —James Butterfill, Head of Research, CoinShares

The executive order led to a surge in Bitcoin futures open interest, reflecting market anticipation. However, as volatility rose, positions unwound rapidly, highlighting the sensitivity of crypto markets to regulatory changes.

Experts suggest this could introduce substantial funds into crypto markets from 401(k) plans. Historically, similar approvals led to initial spikes in coin prices and derivatives volume, followed by stabilization.

This policy reinstates a practice from Trump’s first term, previously revoked. Past Bitcoin ETF approvals caused similar market responses, with initial surges followed by periods of consolidation across affected assets. Kanalcoin highlights how systematic demand from retirement accounts may provide consistency in market flows.

“Unlike retail investors, who chase momentum or institutional traders seeking alpha, 401(k) participants typically maintain target allocations through systematic rebalancing—creating sustained, predictable demand flows.” —Jake Ostrovskis, OTC Trader, Wintermute