The US Department of Labor published a proposed rule to allow crypto in 401(k) retirement plans. With $7.4T in US 401(k) assets, even a 1-2% allocation represents $74-148B in potential Bitcoin demand.
The US Department of Labor published a proposed rule to allow crypto in 401(k) retirement plans. With $7.4T in US 401(k) assets, even a 1-2% allocation represents $74-148B in potential Bitcoin demand.
The US Department of Labor published a proposed rule in the Federal Register seeking to expand 401(k) investment options to include digital assets like Bitcoin.
Labor Secretary Lori Chavez-DeRemer said the proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today, calling it a major win for American workers, retirees, and their families.
SEC Chair Paul Atkins added that broadening American investors access to well-diversified, long-term investments is a critical priority for effective retirement planning.
US 401(k) plans hold roughly $7.4 trillion in assets. At BlackRock recommended 1% allocation, that is $74 billion in potential Bitcoin demand. At Morgan Stanley recommended 2-4%, it is $148-296 billion. Current total spot Bitcoin ETF AUM is approximately $85 billion.
401(k) contributions are automatic and recurring. Every paycheck becomes a potential Bitcoin purchase, creating sustained demand from millions of American workers. This is a completely different demand profile than episodic ETF inflows.
US spot Bitcoin ETFs attracted $996M in weekly net inflows, the most since early January, powered by a $663.9M Friday surge as geopolitical de-escalation triggered a risk-on wave. Total ETF AUM crossed $101B for the first time. BlackRock IBIT alone added $269.3M Thursday — its best day in a month. The flows pushed YTD net inflows back within $80M of positive territory after months of outflows.
Charles Schwab announced Schwab Crypto, offering direct spot BTC and ETH trading to retail clients via linked accounts with Paxos execution and 0.75% fees. With $12.2T in client assets and 39 million accounts, it's the largest traditional brokerage to offer direct crypto trading. The move caps a historic week that included Morgan Stanley's MSBT ETF launch and Goldman Sachs's Bitcoin income ETF filing.
MSBT has attracted over $103M in net inflows within its first week, surpassing WisdomTree WBTC ($86M accumulated since January 2024) and marking Morgan Stanley's most successful ETF launch ever. The 0.14% fee fund now has six consecutive days of inflows, while Goldman Sachs filed for a competing Bitcoin income ETF and BlackRock is preparing its own income-focused product.