Recently, a significant policy change has attracted widespread attention in the financial sector. Trump signed an executive order allowing 401(k) retirement plans to invest in encryption currencies and other alternative assets. This decision could have a profound impact on the encryption currency market.

401(k) plan is the main pension system in the United States, with an asset scale of 8.7 trillion dollars, accounting for more than 70% of the U.S. pension system. If 1% of these funds are invested in encryption, it will bring approximately 87 billion dollars of new funds to the market, equivalent to 5% of the current total market value of encryption.

What is even more remarkable is that if the allocation ratio is increased to 3% (which is comparable to the current ratio of the California pension fund CalPERS), the potential influx of funds could exceed $260 billion. This figure far exceeds the expected net inflow of $15 billion for the Bitcoin spot ETF in 2024.

The potential impact of this policy change is shocking. Such a large influx of funds could have a significant driving effect on the encryption currency market, and may even trigger severe fluctuations in the market.

However, we should also take a cautious view of this change. Although the policy has opened up investment channels, the actual flow of funds still depends on various factors, including investors' risk preferences, changes in the market regulatory environment, and the development of encryption currencies themselves.

Regardless, this policy change has undoubtedly injected new vitality into the encryption currency market and provided us with a new perspective on the role of digital assets in the future financial system. Investors and market participants should closely monitor the subsequent developments in this field.