Analysis of Retail Investor Access to PE and Bitcoin in Retirement Accounts Post-Executive Order 14330

The August 7, 2025 Executive Order (EO) 14330 expands 401(k) access to alternative assets like PE, real estate, and digital assets (including Bitcoin) [1]. This aligns with democratizing alternative investments but contrasts with retail investor concerns about limited control over allocations [7]. Most participants (84%) use target-date funds (TDFs) managed by plan sponsors, meaning individual investors may not directly choose PE/Bitcoin allocations [3]. PE’s illiquidity is a key concern, though proponents note it would likely be a small portion of managed funds [5]. Bitcoin inclusion raises volatility worries, with no data on plan sponsors’ implementation plans [7].

1. Indirect Impact
   : TDF dominance (84% usage) means most retail investors will experience the EO’s effects indirectly via plan sponsors’ decisions, not direct choices [3].
2. Liquidity Mitigation
   : PE’s illiquidity risks are partially mitigated by inclusion in diversified managed funds, but lump-sum withdrawals could still be affected [5].
3. Volatility Concerns
   : Bitcoin’s historical volatility and reliance on new capital inflows are valid worries for retirement portfolios, though no explicit data supports these claims [7].

• Liquidity
  : PE’s illiquidity may restrict emergency withdrawals for investors with significant PE allocations [5].
• Volatility
  : Bitcoin inclusion could increase portfolio volatility [7].
• Control
  : Lack of direct allocation choices for most investors due to TDF dominance [3].

• Diversification
  : PE inclusion may offer diversification benefits for retirement portfolios [5].
• Market Expansion
  : Alternative asset managers gain access to the $9.3T 401(k) market [4].

• EO Details
  : Signed August 7, 2025, EO 14330 allows PE, Bitcoin, and other alternatives in 401(k) plans [1].
• TDF Usage
  : 84% of 401(k) participants use TDFs, with 71% investing their entire account in one fund [3].
• Market Size
  : 401(k) assets totaled $9.3T in Q2 2025 [4].
• Self-Directed
  : Limited self-direction (only 5% of nonadvised participants traded in 2024) [3].