Opening 401(k)s to Crypto Could be Bonanza for Sector

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U.S. President Donald Trump's August 7 Executive Order made it possible for all 401(k) and similar retirement accounts to invest in cryptocurrencies, such as Bitcoin, Ethereum, Solana, and more, once the regulatory and infrastructure work required to make it a reality is completed. Once officially greenlighted and plan sponsors begin adding a crypto option, the change "could be a potential boon for the sector," reported Reuters on August 7.

"This seismic shift not only invites average workers to dip their toes into the realm of Bitcoin but also teases a wave of capital investments that could redefine the contours of our financial landscape," according to OneSafe in an August 20 blog post. OneSafe offers a same-named financial platform for startups.

The crypto market could see significant capital inflows as a result. In the U.S., about US$12.2 trillion (US$12.2T) is held in defined contribution retirement plans, according to the Investment Company Institute, US$8.7T of which is in 401(k) plans. Even if only 1% of the total was moved into cryptocurrencies over three to five years, a conservative scenario, it would equal an injection of US$122 billion (US$122B) into the digital asset market, noted TaxGlobal in an August 10 article. Such a boost would increase the total crypto market cap by about 5–10%, which today stands at US$4T, reported CNBC on August 7.

"The potential impact on cryptocurrency markets is staggering when you consider the scale of American retirement savings," wrote TaxGlobal.

As for which cryptocurrencies could dominate, according to Yahoo Finance in an August 19 article, Solana, Ethereum, and other decentralized finance, or DeFi, tokens are expected to play a larger role, "pulling more trading volume onto exchanges and lifting related equities."

Even if only 1% of the total was moved into cryptocurrencies over three to five years, a conservative scenario, it would equal an injection of US$122 billion (US$122B) into the digital asset market, noted TaxGlobal.

Increased demand for retirement account investment in digital assets would drive up their prices, OneSafe pointed out, and legitimize them as mainstream investments.

Having access to crypto through their employer-sponsored retirement plans, alongside stocks and bonds, would make it simpler and more acceptable for Americans to invest in this alternative asset class than in the past. It would also encourage longer-term investing in digital assets.

"What we're seeing. . .[is] the aperture of being able to buy crypto being widened and widened, more avenues bringing people into the tent," Galaxy Chief Executive Officer Michael Novogratz told CNBC's Squawk Box, the media company reported. "When it becomes commonplace — when you can do it at the place you've already been doing business with, if it's Fidelity or T. Rowe Price or whoever it is — you just pull more people into this ecosystem."

Proponents say the main benefits to investors of opening 401(k)s to crypto are access to new assets, the potential for higher returns than with just stocks and bonds and added diversification, noted Reuters.

"Expanding access to investments long out of reach will help ensure millions of Americans build stronger, more diversified portfolios designed to increase savings and address the practical considerations of defined contribution plan fiduciaries," Jaime Magyera, head of retirement for BlackRock, wrote in a statement.

Opponents cite the high volatility and loose regulation of crypto as the primary down sides, according to NPR in an August 16 article.

The U.S. Government Accountability Office (GAO) pointed out in a December 2024 WatchBlog post that already some employer-sponsored retirement plans offer the option to invest in crypto assets through 401(k) plans, and this has been the case since 2022. In its November 2024 report, the GAO identified 69 crypto asset investment options available to 401(k) participants and wrote that available industry data suggested 401(k) investment in crypto assets remained low.

Crypto is regulated by the same federal regulations that set minimum standards for protecting employees' retirement plans, including the Employee Retirement Income Security Act, or ERISA, but more is needed, the GAO opined. Specifically, the GAO recommended that the U.S. Department of Labor begin collecting the proper information to fully understand and oversee participant investment in 401(k) plans, that a federal regulator be designated to oversee crypto assets, and that federal agencies, including the Federal Reserve, together identify risks that crypto assets pose.

Implementing Trump's vision to expand the investment options Americans have with their defined contribution retirement accounts requires these steps: regulatory development, product creation, plan adoption, and risk assessment, according to TaxGlobal. Specifically, federal agencies must propose and finalize new regulations, asset management companies must develop crypto-centric retirement products, employers and plan providers must choose whether or not to offer the crypto options, and legal teams will assess related litigation risks and fiduciary responsibilities. This work, industry experts told TaxGlobal, could take just months or up to several years.

Here is a look at four companies that could stand to benefit from the change:

Coinbase Global

Coinbase Global Inc. (COIN:NASDAQ) is a San Francisco, Calif.-based online platform for buying, selling, transferring and storing cryptocurrency.

It brokers exchanges of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Tezos and many other cryptocurrencies with fiat currencies in about 32 countries. Also, it brokers Bitcoin transactions and storage in 190 countries worldwide. 

Most recently, Coinbase's acquisition of Deribit closed, according to an August 14 news release. Deribit is the No. 1 crypto options exchange by volume (more than US$1T traded last year) and open interest (about US$60B worth currently) and has a loyal base of institutional and advanced traders. The company's platform is proven, fast, capital efficient. The acquisition makes Coinbase "the most comprehensive global crypto derivatives platform," noted the news release.

Bernstein Analyst Gautam Chhugani wrote in a new research report that he expects Coinbase to capture most of the trading activity when 401(k)s open to crypto investing, reported Yahoo Finance. Given this and the company's "long-term push into on-chain finance," Bernstein raised its price target on Coinbase to US$510 per share, implying a 67% return from its August 20 closing share price.

Refinitiv reports the consensus price target is US$370.06, suggesting 22% upside. Of the 30 Wall Street analysts who rated Coinbase sometime in the past three months, 14 recommend it as a Buy, 14 consider it a Hold, and two have it as a Sell, according to TipRanks data.

Also according to Refinitiv, 17 strategic entities own 1.94% of Coinbase, more than 1,500 institutions have 64.87% and retail investors hold the rest. The company's Top 3 shareholders are The Vanguard Group Inc. with 11.21%, BlackRock Institutional Trust Co. N.A. with 4.90% and State Street Global Advisors (U.S.) with 4.05%.

Coinbase has 256.94 million (256.94M) shares outstanding and 210.96M free float traded shares. Its market cap is US$77.6 billion. Its 52-week range is US$142.58–US$444.65 per share.

Strategy Inc.

Headquartered in Virginia, Strategy Inc. (MSTR:NASDAQ), formerly MicroStrategy Inc., is the largest corporate holder of Bitcoin and the world's first Bitcoin treasury.

The company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers and innovates Bitcoin applications. The company began a rebranding process in February 2025, which culminated with its name change that went into effect August 11, noted a news release. 

In a May contributor's opinion, Dominic Frisby of The Flying Frisby discussed MSTR and Bitcoin's changing landscape. 

He wrote, "I recommended MicroStrategy, as it used to be called, to readers back in August 2023, largely because it was a means to get Bitcoin exposure via your broker. You wouldn't have to jump through all the hoops of buying Bitcoin through exchanges, which the FCA has made so difficult. It has been a big win for readers, having more than 12x'd since we tipped it, outperforming Bitcoin by a considerable margin."

He discussed Chairman and Founder Michael Saylor, saying, "I think there's a very good chance that Strategy becomes a trillion-dollar company, while Michael Saylor becomes the world's richest man."

Year to date, Strategy delivered a 25% Bitcoin yield and again raised its 2025 yield guidance, this time to 30% from 20%, reported Clear Street Analyst Brian Dobson in an August 4 research report.

The analyst maintained his Buy rating but raised his price target on Strategy to US$537 from US$508 per share.

The new target better reflects the stronger Bitcoin yield expectations and ongoing robust demand for Strategy's securities offerings, he wrote. It reflects a 69% uplift from Strategy's share price at the end of trading on August 20.

"We expect [Strategy's] mNAV to rise over time, driven by its ability to generate Bitcoin per share returns via its treasury operations," Dobson wrote.

Refinitiv reports that 10 strategic entities own 0.19% of Strategy whereas more than 1,500 institutions hold 55%.

The rest is with retail investors.

The Top 3 shareholders are The Vanguard Group Inc. with 6.98%, Capital International Investors with 5.54% and BlackRock Institutional Trust Co. N.A. with 3.66%.

Strategy has 283.55M outstanding shares and 263.39M free float traded shares. Its market cap is US$95.4B. Its 52-week range is US$113.69–US$543 per share.

SOl Strategies 

SOL Strategies Inc. (HODL:CSE; CYFRF:OTCQB) invests in, supports and provides infrastructure for the Solana (SOL) cryptocurrency blockchain ecosystem.

Through its investments, the company offers its shareholders exposure to Solana (SOL) through its direct investing and staking activities.

The company was to execute an 8:1 consolidation of its shares on the Canadian Stock Exchange on August 5 to support its planned listing on the NASDAQ, noted a July 30 news release.

Once the NASDAQ listing is finalized, SOL Strategies will trade there under the symbol STKE.

In other recent news, the company was chosen by ARK Invest's Digital Asset Revolutions Fund to be its staking provider, noted a July Corporate Highlights report.

According to Refinitiv, the consensus target price on SOL Strategies is CA$32 per share. From the August 20 closing share price, the return to this target is 276%.

As for ownership of the digital asset company, 10 strategic entities hold 20.38% and institutional investors have 0.6%.

The rest is retail.

The No. 1 shareholder is Antanas Guoga, former chair and director, with 17.37%.

SOL Strategies has 22.06M outstanding shares and 16.7M free float traded shares. Its market cap is CA$134.1 million (CA$134.1M). Its 52-week range is CA$0.648–CA$34.32 per share.

Metalpha Technology 

Metalpha Technology Holding Ltd. (MATH:NASDAQ; D92:FSE) is a digital asset-focused wealth management service provider headquartered in Hong Kong and one of Asia's largest crypto derivatives traders.

On July 30, the company announced its results for the fiscal year ended March 31, 2025, in a July 30 news release. Metalpha generated US$44.6M in income from its wealth management business, reflecting a 166% year-over-year increase. The company's net profit totaled US$15.9M, a significant turnaround from a net loss of US$3.7M last year.

In an August 13 contributor's opinion, Sergei Stetsenko of CRG.AI shared why he liked MATH.

He said, "With its modest market capitalization, strong earnings growth, and derivative-driven business model capable of generating profits regardless of BTC price movements, Metalpha (NASDAQ: MATH) represents a hidden opportunity in the crypto investment landscape."

Stetsenko continued, "As the next Bitcoin bull market accelerates, Metalpha stock could become one of the primary beneficiaries. MATH remains among the most undervalued BTC-related equities available, and as more investors recognize its potential, significant revaluation seems probable. Investors seeking a high-upside, institutional-caliber crypto opportunity should consider adding MATH to their watchlists before broader market awareness develops."

According to Refinitiv, five strategic entities own 34.48%, 12 institutions have 10.21% and retail investors hold the rest.

The Top 3 shareholders are Antalpha Technologies Holdings Ltd. with 17.72%, KBR Fund Management Ltd. with 9.39% and Folius Ventures LLC with 8.86%.

The company has 39.5M outstanding shares and 25.88M free float traded shares. Its market cap is US$112.18M. Its 52-week range is US$0.80–4.17 per share.

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