Bitwise CEO defends decision to include Bitcoin in 401(k)s - Coinfea

Bitwise CIO Matt Hougan has defended Trump’s executive order to allow crypto into the United States 401(k). According to Hougan, BTC is just another asset. Despite the asset being risky, it was less volatile than Nvidia stock in 2025.

ContentsBitwise CIO likens BTC volatility to stocksCriminal charges against Powell stirs the crypto marketPresident Trump issued an executive order allowing cryptocurrency to be included in US 401(k) retirement plans. Hougan revealed that, despite the 401(k) institution being slow, it’s moving in that direction to allow allocations to BTC investments. The retirement plan institution manages roughly $12.2 trillion, providing a significant capital inflow into the crypto ecosystem. For instance, a modest 1% allocation could mean roughly $122 billion being directed into the crypto market.

Bitwise CIO likens BTC volatility to stocks

Hougan believes retirement plan institutions are headed toward crypto allocations, with potential inflows expected to arrive late this year due to slow processing across the institutions. If actualized, BlackRock and Fidelity ETFs could greatly benefit, as they are the largest providers of retirement plans. So far, BlackRock’s IBIT ETF has recorded approximately $62.3 billion in cumulative inflows.

Meanwhile, Fidelity’s FBTC has recorded $11.8 billion, based on on-chain data. As of now, Bitcoin ETFs have a cumulative net inflow of $56.5 billion with a total net assets of $118.6 billion. That is roughly 6.5% of BTC’s total supply. The Bitwise CIO highlighted how the legislative landscape will influence the crypto markets this year during an interview with an Investopedia host.

Hougan stated that if the Clarity Act passes, the market is expected to reach new all-time highs across the cryptocurrency landscape. He said the Digital Clarity Act will provide a clear regulatory framework that will attract more institutional capital into the market. Hougan added that he believes more ETFs will be launched this year, noting that the industry needs index-based crypto ETFs.

Criminal charges against Powell stirs the crypto market

He also estimated that the market could attract at least $10 billion into the crypto landscape. He also disclosed that Bitwise is planning to launch index-based exposure ETFs, which will combine exposure to multiple crypto tokens for its customers. When asked about BTC’s 4-year cycle, Hougan said that 2026 will be a ‘negative’ year for Bitcoin.

The Bitwise CIO attributed this to the diminishing significance of Bitcoin’s halvings. So far, not much BTC is being produced, and at the same time, interest rates are reducing. According to Hougan, the 4-year cycle will be broken in 2026 and replaced by a 10-year grind. Meanwhile, the market is uncertain following the Department of Justice in the District of Columbia’s investigation into Fed Chair Jerome Powell, led by Jeanine Pirro.

Powell defended the Fed, noting that the threat of criminal charges is a consequence of the Fed setting interest rates based on an assessment of what serves the public best rather than the President’s interests. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions or whether, instead, monetary policy will be directed by political pressure or intimidation,” he said.