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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.