Trump's New Policies + Bullish Upcoming IPO: Can Dual Positive Factors Ignite the Crypto Market?

On Thursday, U.S. President Trump signed an executive order allowing Americans' 401(k) plans to invest in private equity funds, Bitcoin, and other Cryptos, as well as so-called alternative Assets.This decision marks a significant policy shift in the U.S. pension investment landscape.

In response to this news, Cryptos surged,$Bitcoin (BTC.CC)$ reaching a high of nearly $118,000.$Ethereum (ETH.CC)$ approaches 4000 dollars.

For those mooers curious about what 401(k) is, how this executive order affects Cryptos, and which companies are worth watching, we will address these questions one by one.

What is a 401(k) and what impact does it have on Cryptos?

The 401(k) plan in the United States is not a traditional retirement fund, but rather an employer-provided retirement savings plan that allows employees to choose to have a portion of their salary deposited into a personal Account under the plan for retirement savings. Additionally, employers typically provide a certain percentage of matching contributions. The funds can be invested in low-risk assets such as Funds, Stocks, and Bonds.

In the United States, the 401(k) plan is one of the most popular methods for retirement savings,allowing workers to invest a portion of their salary in publicly traded securities on a tax-free basis, with asset allocation strictly limited to public market products such as Stocks, Bonds, and mutual funds.This has formed a nearly half-century unshaken boundary of 'safe Assets'.

Notably, Behind the long-term bull market in U.S. stocks, the quietly accumulating retirement accounts of workers are one of the key driving forces.American workers contribute 7.7% of their salary to their 401(k) plans annually, and when including employer contributions, the total contribution rate reaches 12%. With over 70 million participants (20.5% of the U.S. population), this means that 9.5% of the nation's payroll funds flow into the stock market each year.

According to data released by the Investment Company Institute, By the first quarter of 2025, Americans are expected to hold approximately $8.7 trillion in Assets in their 401(k) Accounts.

Analysts at Dragonfly, a partner at the firm, have calculated thatallocating just 1% of 401(k) Assets to Cryptos could bring in about $90 billion in new funds, equivalent to nearly 5% of the current total Market Cap of Cryptos.If all of this were to be invested in Bitcoin, it would generate demand for approximately 810,000 Bitcoins. If all of this were to be invested in Ethereum, the demand would be for about 22.5 million Ether.

This executive order is undoubtedly a Bullish signal for the Cryptos Industry. This reform is the latest move by Trump to support the Cryptos Industry. Previously, the U.S. Congress has passed several bills related to Cryptos.

The Global Market Insights Director at Hashdex Asset Management, a firm focused on the Cryptos sector, stated:Bitcoin has moved beyond its early stage as a speculative asset and is gradually becoming part of the long-term investment strategy for many investors. This executive order will help accelerate this trend.

Which companies are worth watching?

As Trump unveils this executive plan, it coincides with the upcoming listing of Bullish, backed by Peter Thiel, which is expected to drive a wave of enthusiasm for Cryptos-related Stocks. $Bullish (BLSH.US)$ This is the first Cryptos IPO project since Trump signed the Genius Act on June 17. The market is eagerly awaiting to see if Bullish can become the next Circle. Earlier, the listing of Circle, the first stablecoin company, and the passing of the stablecoin bill also sparked an investment frenzy in Capital Markets. Futubull has previously compiled a list of related concept Stocks for mooers to reference:

Previously,A Heavyweight Cryptos IPO! Bullish, Backed by Peter Thiel, Is Set to List—Can It Become the Next Circle?A detailed analysis of Bullish is available; interested mooers can click to view.

The market is currently looking forward to seeing if Bullish can become the next Circle. The earlier listing of Circle, the first stablecoin company, and the passage of the stablecoin bill also sparked an investment frenzy in Capital Markets. Futubull has previously compiled a list of related concept Stocks for mooers to reference:

Specifically, in the US market, $Circle (CRCL.US)$ Undoubtedly, it is the first choice in stablecoins.USDC, issued by Circle, currently holds 29% of the market share, second only to Tether's USDT.

Seaport Research Partners predicts that the total Market Cap of the stablecoin market will grow from its current $260 billion to $500 billion by the end of 2026, and could potentially reach a scale of $2 trillion in the long term. This growth is primarily driven by the adoption of stablecoins in areas such as DeFi, cross-border payments, and e-commerce.

Although USDC currently lags behind Tether in market share, it has unique advantages in compliance, transparency, and collaboration with Financial Institutions. It is considered a more regulated digital dollar, and its alignment with traditional finance is a key selling point.

As more companies incorporate stablecoins into their treasury management or use them for payments, the use cases for USDC will significantly expand.

Cryptocurrency exchanges include $Coinbase (COIN.US)$ 、 $Robinhood (HOOD.US)$ ; traditional financial institutions and payment platforms include $Fiserv (FISV.US)$ 、 $PayPal (PYPL.US)$ 、 $Visa (V.US)$ 、 $JPMorgan (JPM.US)$ 、 $Bank of America (BAC.US)$ 、 $Citigroup (C.US)$ 、 $Wells Fargo & Co (WFC.US)$ These companies are actively embracing the stablecoin sector;

Furthermore, the fintech company $SoFi Technologies (SOFI.US)$ plans to relaunch Bitcoin and Ethereum trading, and will also introduce a blockchain-based cross-border remittance service; in the future, it will further expand into stablecoin trading, provide lending services collateralized by cryptos, expand payment options, and introduce new staking features.

In addition to stablecoins and Cryptos-related stocks, holdings of cryptocurrencies and Bitcoin miners are also worth investors' attention.Previously,Trump's Big Move! $9 Trillion in Pensions May Flow into the Cryptos Market, Which Concept Stocks Are Expected to Boom?A previous article provided a detailed analysis of these three concepts. Interested mooers can click to read it.

Overall, in the Trump 2.0 era, the Cryptos Industry is expected to experience disruptive development. However,the crypto market sometimes follows the 'buy the rumor, sell the news' pattern, and mooers need to be aware of potential risks.

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