This article examines the potential impact on XRP if global retirement funds were to allocate 1% of their $50 trillion assets to the coin.
Recently, the prospects of institutions investing in XRP and holding it for the long term have gained traction. Over eight firms, including Trident Digital, Webus, and VivoPower, have announced plans to hold XRP as a treasury asset.
Amid this institutional frenzy, some suggest it may not be long before global retirement funds join the XRP investment train. Many already see XRP as a potential investment vehicle for retirement, with various ambitious predictions for the coin.
These funds invest conservatively to meet their long-term obligations, focusing on bonds, equities, and real estate. However, the growing acceptance of crypto assets as alternative investments is shifting this landscape.
Allocating even a small portion of such vast assets to XRP could generate significant capital inflows into the cryptocurrency. Given the sheer size of these funds, a 1% allocation translates into hundreds of billions of dollars entering the XRP market.
XRP Price If Retirement Funds Allocate 1%: Scenario 1
Currently, XRP is trading at around $3.00, with a circulating supply of approximately 59 billion tokens. This places its market capitalization near $165 billion.
If global retirement funds were to allocate 1% of their $50 trillion assets, that would equal a $500 billion investment in XRP. For context, this is roughly three times its current market cap.
Assuming a straightforward, linear price impact, this inflow could push XRP’s market capitalization to about $665 billion. In effect, this would translate into an estimated price of $11.28 per XRP.
However, market dynamics in crypto are rarely linear. Liquidity constraints, speculative momentum, and order book depth can amplify price movements well beyond such calculations.
Scenario 2: The Multiplier Effect on XRP Price
Historically, when large sums enter crypto markets like XRP, the price impact can multiply due to a phenomenon known as the multiplier effect.
Initial buying pressure often drives prices higher, attracting additional investors and creating momentum. Thin order books mean that to purchase significant amounts, buyers must accept higher prices, further escalating XRP’s value.
If we factor in a conservative multiplier effect, XRP’s price could rise anywhere from 1.5 to 3 times the linear estimate. This would place the potential price range between approximately $17 and $34 per XRP. A higher multiplier effect simultaneously means higher prices.
Challenges and Considerations for Retirement Funds
Until recently, regulatory uncertainty significantly slowed the adoption of cryptocurrencies like XRP in retirement portfolios.
The U.S. Department of Labor’s 2022 guidance had discouraged fiduciaries from including crypto assets due to concerns over volatility, custody, and speculative risks.
However, the regulatory landscape has changed dramatically in 2025. The U.S. Department of Labor officially rescinded its 2022 crypto restrictions. It returned to a neutral position in May 2025 that neither endorses nor discourages crypto in retirement plans. This move aligns with similar easing by the Federal Reserve, FDIC, and OCC.
Ultimately, the possibility of global retirement funds allocating just 1% of their portfolios to XRP could transform its market. The size of these funds means such an investment would not only elevate XRP’s price dramatically but also boost its legitimacy as a long-term asset class.
