XRP could record one of its most significant price increases if American pension funds diversify even a small share of their holdings into digital assets.
Estimates suggest that allocating just 5% of total U.S. pension assets to XRP could push its value above $70, positioning it among the top beneficiaries of institutional adoption in the cryptocurrency market.
Growing Institutional Interest in Crypto
Institutional investors, including pension funds and retirement managers, are gradually showing more openness to cryptocurrencies. In recent years, both defined-benefit plans and 401(k) accounts have started experimenting with small exposures to digital assets. These allocations are typically introduced through spot exchange-traded funds (ETFs) or through companies with direct crypto exposure, such as MicroStrategy (MSTR).
So far, the level of investment remains conservative, ranging between 0.1% and 1% of portfolio allocations. Many fund managers continue to exercise caution due to crypto’s volatility and perceived risk.
Critics, including the advocacy group Better Markets, have described such moves as potentially irresponsible for retirement accounts. Still, the number of public entities allowing crypto investments is rising.
As of April 2025, reports indicate that at least 17 U.S. states had either authorized or were reviewing proposals to permit crypto investments for reserve funds, while 16 states had done the same for their pension systems. Pennsylvania notably introduced legislation in late 2024 allowing its state treasurer and pension programs to gain exposure to Bitcoin.
A study published by the CFA Institute, initially in 2022 and updated in 2024, revealed that 94% of state and local pension plans and 62% of corporate pension funds now hold crypto-related investments, whether directly or indirectly.
Policy Changes Under the Trump Administration
A major policy shift came when President Donald Trump issued an executive order instructing the Department of Labor (DOL) to review and update its guidelines regarding alternative investments within 401(k) retirement accounts.
This order overturned the DOL’s earlier position from May 2022, which had warned against crypto allocations in retirement funds due to potential volatility and fraud risks. The revised policy now gives fiduciaries more flexibility to include digital assets, which could encourage broader participation from pension institutions.
Should this happen, pension funds could start to allocate small but impactful portions of their portfolios to alternative assets, like XRP, potentially reshaping the token’s market dynamics.
XRP Price Projection Based on 5% Allocation
According to data from the Investment Company Institute, total assets under U.S. pension funds and retirement accounts reached $45.8 trillion as of June 30, 2025. These figures encompass both defined-benefit and defined-contribution plans, including 401(k).
Presently, XRP trades near $2.60, with a market capitalization of approximately $147.6 billion and a circulating supply of about 59.9 billion tokens. If pension funds were to direct 5% of their collective holdings, around $2.29 trillion, into XRP, the resulting capital inflow would significantly expand the asset’s market capitalization.
Market behavior in crypto often exhibits a multiplier effect, where capital inflows trigger price increases larger than the initial investment. Analyst Dom previously noted that XRP has historically shown multiplier effects of over 200x. Even applying a conservative 2x multiplier, a $2.29 trillion investment would elevate XRP’s total valuation by roughly $4.58 trillion.
Adding this figure to the current capitalization of $147 billion results in a projected market value near $4.73 trillion. Dividing this by XRP’s 60 billion token supply yields an estimated price of approximately $78.70 per coin.
While such projections remain hypothetical, they illustrate the scale of potential growth if institutional investors fully embrace digital assets. A modest allocation from the pension fund sector alone could drastically reshape XRP’s market position, especially if regulatory conditions continue to evolve favourably.