Key Highlights:
- A shift in the US retirement investment landscape has led to a great inflow in the digital asset market.
- Two leading cryptocurrencies have dominated the investors interest.
- Industry watchers indicate that this could mark a turning point in mainstream adoption.
Digital asset investment products experienced a great crypto inflow last week, totalling $572 million as per CoinShares. This crypto inflow was mainly driven by Ethereum exchange-traded products (ETPs) which led with $268 million, followed closely by Bitcoin with $260 million in inflows. Other than these two major cryptocurrencies, tokens such as SOL and XRP also brought a significant amount of inflow. This market recovery is closely tied to the recent policy development in the United States, in which the cryptocurrencies were allowed to be included in 401(k) retirement accounts.
President Donald Trump Signs the Executive Order
President Donald Trump signed an executive order on August 7, 2025 which directs federal agencies, which includes Department of Labor (DOL) and the Securities and Exchange Commission (SEC), to revisit and revise retirement account rules to allow broader variety of investments such as cryptocurrencies, private equity and real estate.
Even though digital assets such as cryptocurrencies were never explicitly banned in 401(k)s, but as per the guidance from Department of Labor, fiduciaries had to exercise “extreme care” before getting or including such investment menus. This was because of the fact that there were concerns revolving around fraud, volatility, custody protection and legal uncertainty. This cautious approach was formally rescinded in May 2025 by the DOL, which then reverted to a facts and circumstances evaluation standard for cryptocurrencies which are similar to other investment options.
The main aim of this executive order is not to directly promote cryptocurrencies but it wants to make it easier for investors to choose cryptocurrencies or any other asset for their investment accounts. If the investors have a high risk tolerance, something that usually attracts younger tech savvy generation, they can choose cryptocurrencies as their retirement fund. With this initiative, billions of dollars may flow into the digital asset space through 401(k) plans. This will significantly expand both the market base and mainstream acceptance of the cryptocurrencies.
Ethereum and Bitcoin Lead the Crypto Inflow Rally
The impact of this announcement was seen immediately within the market. CoinShares’ crypto inflow numbers indicate that Ethereum was a particular beneficiary with $268 million of new investments. It also indicates that the token is solidifying its position as a leading digital asset for institutional and retail investors.
Bitcoin, also attracted $260 million in inflows, even though there was a slight caution in the previous weeks. Whereas, altcoins such as XRP, Solana and Near, saw notable, smaller crypto inflows that indicate that the investors are also focusing on diversifying their interest across the digital asset space.
This policy change and the recent surge in interest marks an important step for bringing crypto into mainstream retirement plans. Analysts believe that with this initiative, billions of dollars could flow in as fresh investment in the digital asset space. On the other side, the adoption of digital assets will also increase as more and more people can now add crypto to their retirement funds. In this way, more people can have an exposure to the growing market of crypto.
With this initiative, individuals can also diversify their portfolio and give a push to their long-term returns. All can only mean one thing, that the big financial institutions are finally starting to see cryptocurrencies as serious investment options for building secure retirement plans.
Also Read: Trump to Allow Crypto in 401(k) Plans via New Executive Order