Galaxy Digital CEO Mike Novogratz expressed strong optimism about the cryptocurrency market on August 7, 2025, forecasting that “tons of money” will flow into digital assets following President Donald Trump’s executive order to include crypto, private equity, and real estate in 401(k) retirement plans, as reported by Bloomberg. Speaking on CNBC’s Squawk Box, Novogratz highlighted the potential for this policy to unlock billions from the $12.5 trillion 401(k) market, calling it a “game-changer” for crypto adoption. The order, signed on Thursday, directs the Labor Department to revise restrictions under the Employee Retirement Income Security Act of 1974, easing the inclusion of alternative assets in retirement accounts, per Reuters.
Novogratz, a prominent figure in crypto investment, emphasized the shift’s significance, stating, “There’s going to be tons of money that’s going to pour in now because people are going to be able to put this in their 401(k)s.” He pointed to Bitcoin’s recent climb to $116,370.15, up nearly $800 shortly after the announcement, as evidence of market enthusiasm, per CoinDesk. The executive order also tasks the Securities and Exchange Commission and Treasury Department with exploring rule changes to facilitate access to digital assets like Bitcoin and Ethereum, as well as private equity and real estate, per The Block. This move builds on the Labor Department’s May 2025 reversal of Biden-era guidance that cautioned against crypto in retirement plans, per Cointelegraph.
The policy has sparked debate over risks and rewards. Critics, including Senator Elizabeth Warren, warned in June that alternative assets like crypto carry high fees and volatility, posing risks to retirees, per Yahoo Finance. “These characteristics may not align well with the needs of average 401(k) participants,” Warren wrote to Empower Retirement’s CEO. However, Novogratz countered that diversified crypto exposure could yield higher returns, noting Bitcoin outperformed the Nasdaq in five of the last six years, per Cointelegraph. Major firms like BlackRock and Vanguard are already preparing crypto-focused retirement products, per Coinpedia.
Key aspects of Trump’s executive order include:
- Market Impact: Opens $12.5 trillion in 401(k) assets to crypto and private assets.
- Regulatory Shift: Labor Department to clarify fiduciary rules for alternative investments.
- Industry Support: Firms like Fidelity and BlackRock gear up for crypto offerings.
The White House stressed that no decision is final unless confirmed by Trump, with spokesperson Kush Desai stating, “President Trump is committed to restoring prosperity for everyday Americans,” per Financial Times. As the crypto market anticipates a surge in retail investment, Novogratz’s bullish outlook reflects growing confidence in digital assets’ mainstream integration, though savers are urged to weigh volatility risks carefully.
