US President Donald Trump’s push to open retirement accounts to alternative assets has led to a surge in investments into digital assets, with annual inflows hitting a record $11 billion. The majority of the funds, $9.8 billion, were invested in ethereum-based exchange-traded products (ETPs), which allow investors exposure to cryptocurrency without directly holding it.
The increase was largely driven by new money flowing into digital assets last week, with nearly $4 billion invested. The US dominated 99% of the total haul, indicating a strong domestic interest in alternative investments.
Ethereum’s popularity surged as Federal Reserve Chairman Jerome Powell signaled a possible interest rate cut as early as September, bringing the price to near the $4,800 level. This boost was also attributed to Trump’s executive order, which aims to “democratize access” to alternative assets for 401(k) investors.
Other cryptocurrencies, including bitcoin and smaller tokens like Solana and XRP, also saw inflows of millions of dollars. The largest cryptocurrency by market value, bitcoin, hovered around the $116,000 level, up 20% year-to-date but down from its record high.
Source: https://www.foxbusiness.com/markets/trumps-401k-expansion-fuels-ethereum-boom