Here is the XRP Price If Pension Funds Allocate 5% into XRP

XRP price could surpass the $70 milestone if U.S. pension funds allocate just 5% of their total value into the crypto asset.

Notably, U.S. pension funds are slowly warming up to crypto, and this could have positive implications for assets like Bitcoin, Ethereum, and XRP. 

Pension Funds Warming up to Crypto

Over the past few months, both public defined-benefit plans and 401(k) accounts have started exploring small crypto allocations, mostly through spot ETFs or indirect exposure via crypto-linked companies such as Strategy (MSTR).

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For now, these allocations remain modest, usually between 0.1% and 1% of total portfolios, as many fund managers still worry about crypto’s volatility. Moreover, critics like Better Markets have even called such investments a “risky gamble” for retirees. Despite this, the number of states opening their doors to crypto is growing.

By April 1, 2025, at least 17 states had either approved or considered crypto investments for reserve funds, while 16 states had done the same for pension programs. Last December, Pennsylvania introduced a bill that would allow state treasurers and pension systems to invest in Bitcoin. 

Also, institutional interest is showing up in surveys. According to a CFA Institute study first published in April 2022 and updated in 2024, about 94% of state and local pensions and 62% of corporate defined-benefit plans already hold crypto-related assets in some form. 

Trump’s Executive Order

Notably, one of the most important developments occurred when President Donald Trump signed an executive order that directs the Department of Labor (DOL) to clarify fiduciary standards for alternative assets, including cryptocurrencies, in 401(k) plans. 

This order reversed the DOL’s May 2022 guidance, which had discouraged crypto investments in retirement accounts because of volatility and fraud risks. The new policy could clear the path for more pension funds to add crypto to their portfolios.

If this happens, and pension funds choose to allocate just 5% of their holdings to an altcoin like XRP, the resulting impact could be massive. 

XRP Price if Pension Funds Allocate 5%

As of June 30, 2025, U.S. pension funds and retirement accounts collectively held $45.8 trillion in financial assets, according to the Investment Company Institute’s quarterly report. These holdings include both defined-benefit (DB) and defined-contribution (DC) plans such as 401(k)s.

Right now, XRP trades at $2.47 and has a market cap of $147.57 billion, with a circulating supply of 59.91 billion tokens. If pension funds pour just 5% of their total assets, about $2.29 trillion, into XRP, the impact could be enormous.

Meanwhile, due to the market cap multiplier effect, large inflows often drive much bigger increases in valuation. XRP has historically shown multipliers in the hundreds. 

For instance, in May 2025, market analyst Dom pointed out a 272x multiplier for the token. Even if we take a conservative 2x multiplier, a $2.29 trillion inflow would lift XRP’s market cap by about $4.58 trillion.

Adding that to its current $147 billion valuation would bring the total market cap to roughly $4.727 trillion. With a supply of 60 billion tokens, the XRP price would jump to around $78.70 per coin.