Bitcoin has rallied some 4.5% from the recent lows around the 112k mark on August 2. This low came in a day after market expectations regarding Federal Reserve rate cuts saw a significant shift in tone and the US Dollar rally fizzled.
Another positive development for both Bitcoin and Crypto markets came earlier today as President Donald Trump signed an executive order that aims to allow 401(k) investors access to alternative assets (such as digital assets)
Trump Signs Executive Order to Allow Bitcoin and Crypto in 401(k)s
During the US session, the president of the United States, Donald Trump, signed an Executive Order that aims to allow 401(k) investors access to alternative assets (such as digital assets).
According to the official announcement:
“The order directs the Secretary of Labor to reexamine the Department of Labor’s guidance on a fiduciary’s duties regarding alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans.”
This comes as part of Trump’s plans to establish the country as the leading player in the cryptocurrency industry. To this point, the order also stipulates that “alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits.”
The move saw cryptocurrencies as a whole benefit, Bitcoin's price is now over $117,000, up 2% today. Ethereum (ETH), a hot topic among altcoins recently, has risen by 5%.
The move could see greater institutional flows as market participants who have not had crypto investments in the past could look to include a portion in their 401k.
ETF Flows Reflect Changing Market Dynamics
Looking at ETF flows over the past week and they do reflect in part the changes to market conditions. ETF flows had enjoyed 5 consecutive days of inflows ahead of the Fed meeting.
This came to an end as Fed Chair Jerome Powell adopted rather hawkish rhetoric in his post FOMC meeting comments. This saw inflows stop with 4 consecutive days of outflows as markets eyed the possibility of higher rates fro longer.
Fridays Jobs data however through a spanner in the works. Outflows did not cease immediately despite the weak jobs data and continued at the start of this week but have since stalled.
The last two days have seen modest inflows of around 91.5 and 74 million US Dollars. A sign that the tide is turning?
