WisdomTree, a $100 billion asset management firm, released a report that singles out XRP as an altcoin suitable for a long-term portfolio strategy alongside Bitcoin.
XRP community researcher “SMQKE” highlighted this report in a recent tweet. The report positions XRP not as a speculative asset but as a functional complement to Bitcoin within a diversified crypto allocation.
The firm’s research notes that institutional investors are no longer content with exposure to a single mega-cap cryptocurrency. With Bitcoin dominating ETF headlines and media coverage, WisdomTree’s taxonomy identifies XRP as a fitting companion based on its utility, performance, and classification as a Layer-1 payments asset.
Layer-1 Payments Classification Sets XRP Apart
In its digital asset categorization, WisdomTree divides crypto assets into key sectors such as Layer-1 payments, Layer-1 smart contract platforms, DeFi, stablecoins, and NFTs.
The firm uniquely classifies both Bitcoin and XRP under Layer-1 payments, due to their primary function as digital payment instruments.
This distinction positions XRP as the altcoin counterpart to Bitcoin in the payments category, similar to how Solana parallels Ethereum in the smart contract segment.
Why XRP?
Notably, XRP’s design as a fast and scalable payment solution is part of the reason behind WisdomTree’s perspective. Transactions on the XRP Ledger settle in 3–5 seconds. Moreover, XRP utilizes a Proof-of-Association consensus model that consumes significantly less energy than Bitcoin’s Proof-of-Work.
Additionally, XRP’s historically low correlation with Bitcoin and Ethereum strengthens its case for diversification. While Bitcoin and Ethereum often move in tandem, XRP’s performance tends to follow a more independent trajectory, a trait WisdomTree considers valuable for risk management.
Scarcity Dynamics and Institutional Readiness
The report also highlights XRP’s controlled supply. It has a fixed cap of 100 billion tokens, gradually released through Ripple’s escrow system. Ripple returns unused tokens to escrow each month. As of now, XRP’s circulating supply stands at 58.55 billion tokens.
WisdomTree also notes that XRP operates under a long-term deflationary model, where network transaction fees are burned.
With most XRP either distributed or locked and its total supply nearing full circulation, investors see parallels with Bitcoin’s scarcity-driven value proposition. This makes XRP not only functional for payments but also a scarce digital asset with long-term investment appeal, according to the firm.
Smart Money Quietly Positions Into XRP
XRP proponents interpret WisdomTree’s report as evidence that sophisticated investors are quietly accumulating XRP as a strategic counterpart. They argue that smart money is positioning XRP alongside Bitcoin in institutional portfolios that seek a balance between store-of-value and real-world utility.
Interestingly, the U.S. government also mentioned XRP as one of the assets to consider for its strategic crypto stockpile, which it created alongside the much-requested Strategic Bitcoin Reserve. However, the government noted it has no plans to buy any XRP.
Ultimately, as the only altcoin officially recognized alongside Bitcoin in WisdomTree’s framework, XRP’s institutional credibility has received a major boost. Notably, WisdomTree is pursuing an ETF that would invest directly in XRP, offering traditional and institutional investors regulated exposure to the asset.
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.
