A New Era for 401(k) Investing: Unlocking Access to Digital Assets
Trump’s latest executive order opens 401(k) plans to digital assets and other alternative investments, revolutionizing retirement portfolios and creating new growth pathways for digital asset exposure.
Aug 11, 2025On August 7, 2025, President Donald J. Trump signed the executive order, “Democratizing Access to Alternative Assets for 401(k) Investors,” marking a pivotal shift in the retirement investment landscape. The directive calls on the Department of Labor (DoL) and the Securities and Exchange Commission (SEC) to open the doors for mainstream retirement plans to access the competitive returns traditionally reserved for institutional investors and public pension funds. As a result, regulated 401(k) plans can now include a range of alternative assets, such as private equity, real estate, commodities, and most notably, digital assets, allowing individual investors to tap into new, potentially higher-yielding opportunities.
If carried through, this policy could spark a new era in American retirement investing, where digital and blockchain-based products are become integrated parts of long-term portfolios rather than exotic outliers.
From Caution to Inclusion
Until now, the $8.7 trillion 401(k) market has been largely closed to digital assets. The previous administration’s Department of Labor discouraged digital assets in retirement accounts, citing concerns over volatility and regulatory uncertainty.
The new executive order changes all that. It instructs the Department of Labor and the Securities and Exchange Commission to revise the definition of alternative assets to include, among others, "holdings in actively managed investment vehicles that are investing in digital assets." This change allows retirement plans to allocate more effectively into digital assets. Within 180 days, the DoL must reassess fiduciary guidance under ERISA, potentially paving the way for plan sponsors to offer diversified funds that include digital assets. The SEC is tasked with updating its rules to make these products more accessible, possibly revisiting the definitions of accredited investors and qualified purchasers.
A Massive Capital Unlock
The opportunity is enormous. Ninety million Americans contribute to 401(k) plans. Even a 1% allocation to digital assets could direct tens of billions of dollars into the sector. The 401(k) capital pool is steady, long-term, and tax-advantaged; the opposite of the fast-money flows that have dominated digital asset markets.
POTENTIAL 401(K) CAPITAL FLOWS INTO DIGITAL ASSETS
(in billions)
The chart estimates potential inflows into blockchain-based investments if U.S. 401(k) plans allocated between 0.5% and 10% of their assets under the new policy framework. As of March 31, 2025, Americans held \$12.2 trillion in all employer-based defined contribution retirement plans, of which \$8.7 trillion was held in 401(k) plans. This means that even a 0.5% allocation would amount to \$43.5 billion in capital flows. A 1% allocation doubles that to \$87 billion, while a 5% allocation equals about \$435 billion in long-term capital. The most aggressive scenario—a 10% allocation—would direct $870 billion into the sector, an amount that could transform market liquidity and further accelerate digital asset adoption.
For digital asset funds, this represents a significant opportunity for growth. With actively managed investment vehicles now authorized for 401(k) plans, these funds can attract new capital flows from retirement savers, a market that was previously inaccessible. Digital asset hedge funds and fund-of-funds, such as that offered by Samara Alpha Management, now have the potential to tap into this enormous pool of long-term capital, significantly improving liquidity and stability in the digital asset market.
From Speculation to Institutionalization
For digital assets, this is a noteworthy bridge to mainstream finance. Retirement plans demand institutional-grade custody, audited performance, and transparent governance, standards that will accelerate the maturation of the industry.
The executive order also introduces the possibility of safe harbor provisions: clear guidelines that, if followed, shield plan sponsors from litigation risk. This could encourage cautious employers to adopt blockchain-based investments and digital asset funds as part of their retirement offerings. With new regulatory clarity, digital asset funds will become more attractive to a wider pool of institutional and retail investors seeking a trusted and compliant entry point into the space.
The Future of Retirement Investing
For investors, the executive order opens the door to adding digital assets to retirement portfolios in a way that was previously unavailable. With the inclusion of these vehicles, 401(k) participants have access to a broader range of alternative investments that can provide competitive returns, greater diversification, and exposure to the rapidly growing digital asset sector.
In addition to actively managed digital asset funds, tokenized products also become accessible. U.S. Treasurys, money-market funds, and commercial real estate are already being tokenized on public blockchains by firms like Franklin Templeton, BlackRock, and Ondo Finance. Adding these yield-bearing instruments to retirement accounts could provide the transparency fiduciaries seek while giving savers exposure to innovative investment strategies.
Imagine a 401(k) plan that includes traditional assets alongside actively managed funds investing in cryptocurrencies or digital asset strategies. Savers can now own a target-date retirement fund that holds a mix of stocks, bonds, private equity, spot bitcoin, and tokenized Treasury bills, rebalanced automatically, with instant settlement and on-chain transparency.
Such a shift could help address structural challenges in retirement investing, including limited diversification options, liquidity mismatches, and high fees. Digital asset funds offer fractional ownership, faster settlement, and potentially lower costs, benefits that directly accrue to investors. The new regulatory framework provides a foundation for fiduciaries to include these types of funds with the necessary safeguards to meet their legal obligations.
The Road Ahead
Much will depend on the follow-through from regulators. If the DoL and SEC craft clear, workable rules, and if the industry responds with products that meet fiduciary tests, this executive order could be a key moment in integrating digital assets into the broader financial system.
The stakes are high. Success would not only diversify retirement portfolios but also further solidify the U.S. as a global leader in blockchain-enabled finance. Failure would leave trillions of dollars in potential capital flows untapped.
For now, the door is open. And for the digital asset industry, the opportunity is nothing short of transformative.
If you’re interested in adding an investment in digital assets to your retirement contributions, Samara Alpha Management can help guide you through the process of incorporating these innovative vehicles into your portfolio.
Samara welcomes IRA investors. If you are interested in adding an actively managed multi-strategy digital assets vehicle to your retirement portfolio, please contact us to request additional information.
