Leading decentralized exchange First Ledger, operating on the XRPL, has called 401(k) and XRP “basically the same thing.”
The remark came as U.S. lawmakers urged the SEC to implement President Donald Trump’s executive order aimed at opening the $12 trillion 401(k) retirement market to crypto.
Specifically, nine lawmakers, including key House committee chairs French Hill and Ann Wagner, wrote to SEC Chair Paul Atkins to make it easier for retirement plans to include alternative assets like cryptocurrencies.
They asked the SEC to relax specific investor rules so that the 90 million Americans saving for retirement can diversify their portfolios with crypto assets like Bitcoin, Ethereum, and XRP.
Why 401(k) Access Could Unlock Massive Crypto Liquidity
Analysts estimate that a 1% to 2% crypto allocation across the $12 trillion in 401(k) plans could result in $120 billion to $240 billion in inflows.
To put this in perspective, Bitcoin ETFs have attracted $57.3 billion since January 2024. During that time, the price of Bitcoin surged from $45,000 to $124,457, and the global crypto market grew from $1.65 trillion to over $4.17 trillion.
In other words, the $60 billion from Bitcoin ETFs and other investments had a compounding effect on the market. Expectedly, this has fueled discussion about the potential impact of 401(k) plans making even a modest 1% allocation to crypto.
Notably, public pension funds have also begun embracing crypto exposure. For instance, the State of Michigan Retirement System recently expanded its holdings in Bitcoin and Ethereum trusts.
To First Ledger, the parallel between 401(k)s and XRP shows the shared goal of building long-term wealth and enabling more efficient value transfer. Just as 401(k) plans aim to grow retirement savings over decades, XRP is positioning itself as a global bridge asset for institutional adoption and cross-border settlement.
Analysts See a Breakout Opportunity for XRP ETFs via 401(k)
Market commentators like Paul Barron have argued that Trump’s policy shift could be transformative for XRP.
Barron noted that 401(k) capital would likely flow first into crypto exchange-traded funds (ETFs), which are already on the verge of approval for XRP.
Rupert from AllinCrypto echoed this sentiment, stating that access to crypto ETFs through retirement accounts “is going to really change the course that XRP is on.”
He compared the potential impact to the historic launch of the BlackRock Bitcoin ETF. Rupert suggested that XRP’s strong institutional interest could help it exceed expectations and possibly break away from the typical four-year crypto cycle once ETFs go live.
What if Retirement Funds Allocated 1% to XRP?
Meanwhile, amid the wait for XRP ETFs and growing interest from retirement funds, there has been wide speculation about the potential impact on XRP’s price.
An analysis published by The Crypto Basic in early August suggests that if global retirement funds managing around $50 trillion allocated just 1% ($500 billion) to XRP, the price could reach $12 based on a linear estimate. With a multiplier effect, the price could rise to between $17 and $34.
In comparison, a recent analysis by Bill Miller IV suggests that a 2% allocation to Bitcoin could push its price to $175,000, increasing its total market valuation to $3.4 trillion.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
