Galaxy Digital CEO Mike Novogratz believes that the upcoming executive order from Donald Trump could unlock significant capital inflows into Bitcoin and the broader cryptocurrency market.
Novogratz made the remarks in a live interview with CNBC, saying Donald Trump’s recent comments supporting crypto investments in 401(k) retirement plans could unlock a massive influx of capital into the digital asset space.
President Donald Trump to Sign Executive Order to Expand 401(k)
President Donald Trump is expected to sign a new executive order that would permit retirement accounts like 401(k)s to include alternative investments such as crypto, private equity, and real estate. The order directs the Labor Secretary to review fiduciary rules under ERISA to ease private market investments in retirement accounts.
Traditionally excluded due to higher fees and lockup periods, private assets have gained traction in pensions and endowments and have seen limited acceptance in 401(k)s since 2020.
This move is a win for the alternative asset industry, with firms like BlackRock and Empower already planning to introduce private investments in retirement funds.
A Potential Gateway for Trillions in Retirement Savings to Bitcoin
The 401(k) system is one of the largest retirement savings vehicles in the United States, with over $8.7 trillion in assets under management.
Allowing cryptocurrencies in these plans could significantly increase exposure for long-term investors. For many Americans, 401(k)s are their primary means of retirement investment.
Novogratz believes this policy shift would offer a direct path for retail and institutional investors to participate in the crypto market through regulated and tax-advantaged channels. He explained that as crypto investment options become more accessible through familiar financial institutions like Fidelity or T. Rowe Price, broader participation in the digital asset ecosystem is likely to follow.
Expanding Access Through Public Equity and Treasury Platforms
Beyond Trump’s proposal, Novogratz highlighted how treasury firms and publicly traded companies are playing a growing role in expanding access to cryptocurrencies. He explained that a broader range of financial channels is now enabling more investors to enter the market.
He emphasized that public equity markets, which are significantly larger than the current crypto market, are providing new on-ramps for investors. As more publicly traded firms integrate crypto into their business models, capital from institutional investors will continue to flow into the space at an accelerated pace.
Bull Market Momentum and Policy Implications
Novogratz confirmed that the crypto industry is currently in a bull market. However, he cautioned that bull cycles do not last forever and that investors should take advantage of favorable conditions while they persist.
He also pointed out that the alignment of political support, like Trump’s policy comments, with market trends could create a strong tailwind for crypto adoption across both Wall Street and Main Street.
Notably, Novogratz had earlier predicted that Bitcoin would surpass gold and reach $1 million per coin, driven by rising institutional adoption and shifting investor preferences. He pointed to BlackRock’s Bitcoin Trust and a broader move away from the U.S. dollar as key catalysts.
Following these positive developments, the Bitcoin price jumped to $116,297, a 2.0% rise in the past day. Similarly, Ethereum trades $3,824, a 6.3% rise in the past day.
Ethereum Gains Momentum Through Institutional Products
Turning to Ethereum, Novogratz described its investment story as distinct from Bitcoin’s. While Bitcoin is often viewed as digital gold and a hedge against government debt, Ethereum is gaining traction as the underlying infrastructure for decentralized applications and stablecoins.
He said that firms like ConsenSys and Fundstrat have created Ethereum-focused treasury companies, offering public market investors access to staking, lending, and derivative products. As more capital flows into these platforms, Ethereum’s price continues to rise.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
