Ethereum Breaks $3,600, Major Boost for Private Equity! Trump to Allow U.S. Pensions to Invest in Crypto, PE, & More？

Beyond last night’s U.S. House bill passage, media reports indicate Trump will sign an executive order allowing U.S. pensions to invest in crypto, private equity (PE), gold, and other alternative assets, sparking gains in crypto stocks and currencies.  

As of this writing, ETH has surged past $3,600, marking a new phase for the Ethereum ecosystem.  

Allowing Pension Investment in Crypto  

Media reports suggest President Trump is set to sign an executive order opening the $9 trillion U.S. pension market (known as 401(k)) to crypto, gold, and private equity. Analysts say this could revolutionize how Americans manage savings.  

 

Three insiders told media that Trump may sign this as early as this week, enabling 401(k) plans to invest beyond traditional stocks and bonds into digital assets, precious metals, M&A-focused funds, private loans, and infrastructure.  

 

The order will direct federal regulators to address policy barriers, paving the way for these alternatives in professionally managed 401(k) funds.  

 

The White House responded: “President Trump is committed to restoring prosperity and securing Americans’ economic future. Unless from Trump himself, no decision should be deemed official.”  

 

In the U.S., 401(k) is a key retirement savings option for workers, typically invested in stocks and bond mutual funds.  

 

Besides,the Trump family, with its listed firm “Trump Media & Technology Group,” has agreed to buy over $2 billion in Bitcoin and plans to issue a stablecoin and other high-value tokens.  

 

In May, the Labor Department revoked a Biden-era policy that had restricted 401(k) managers from offering crypto options, easing rules further.  

Ethereum’s Future Trajectory  

Every bull market needs a compelling narrative.

 

In 2021, Ethereum rose with NFT and DeFi hype, but pricey JPEGs and decentralized exchanges no longer excite. Now, its appeal lies in tighter integration with traditional finance (TradFi), especially in stablecoins and real-world asset (RWA) tokenization.  

 

These evolving use cases redefine ETH beyond a utility token, positioning it as a reserve asset, a store of value, and even “digital oil.”  

 

A recent Electric Capital report highlights Ethereum’s leadership in stablecoin issuance and settlement.  

 

Blockchain tech now lets anyone with internet access hold and use digital dollars without banks—a first. Stablecoin adoption has grown 60x since 2020, exceeding $200 billion.  

The Block notes yield-bearing stablecoins’ market cap has surpassed $4 billion, the fastest-growing segment, offering passive income via stable assets.  

 

And Ethereum dominates with over 54% of stablecoin transaction volume.  

 

Fidelity’s latest report views Ethereum-like blockchains as sovereign digital economies, akin to open economies where anyone can consume or produce services, with ETH as the base currency coordinating decentralized participants.  

 

Historically, Ethereum averages a 280% mid-bull market gain, with its current market cap at just 18% of Bitcoin’s. It’s poised to target $6,000.  

Private Equity to Benefit  

Media analysis suggests Trump’s order will also benefit global private equity giants like Blackstone, Apollo, and BlackRock, which see growth in managing retail retirement funds.  

 

The order will prompt the Labor Department to consider “safe harbor” provisions for 401(k) managers, reducing legal risks from offering high-fee, illiquid private investments with opaque valuations.  

Blackstone has partnered with Vanguard, while Apollo and Partners Group will supply products to Empower, a major 401(k) operator. BlackRock collaborates with Great Gray Trust.

 

As the 401(k) market embraces private equity, channeling retirement savings into less liquid assets introduces higher fees, increased leverage, and opaque valuation risks.

 

What new waves will this stir? We’ll wait and see.