Fund manager Wisdomtree considers Riples XRP to be the only sensible sidekick for a high-yield Bitcoin strategy
- For fund manager Wisdomtree, XRP is the only altcoin that can complement Bitcoin in long -term institutional crypto strategies.
- In his framework for digital-assets, Wisdomtree categorizes cryptocurrencies according to their benefit. Consequently, an XRP ETF was already requested.
WISDOMTREE, a 100 billion dollar assets administrator, has called XRP as the only altcoin that is suitable as a supplement to Bitcoin in institutional portfolios. The company emphasized the role of XRP in payment systems and its low correlation with other important crypto assets.
The classification of XRP as a Layer 1 payment asset brings it into harmony in terms of benefits and purposes with Bitcoin. The XRP community researcher “Smqke” made This knowledge is careful when Wisdomtree reported that an XRP ETF requested.
XRP is positioned as Bitcoins L1 counterpart
In his framework for digital-assets, Wisdomtree categorizes cryptocurrencies according to their benefit. It grouped both Bitcoin and XRP under “Layer-1 payments”-a category defined by asets that work as digital payment systems. This classification takes off XRP from other old coins, which are typically associated with smart contracts, defi or NFTs.
Wisdomtree According to the XRP, XRP is more of a functional addition to Bitcoin than a speculative system. The transaction pace of XRP from 3 to 5 seconds and its proof-of-association consensus model, which consumes far less energy than Bitcoin’s proof-of work, contribute to its benefit profile. WisdomTree compared the role of XRP in payment transactions with the position of Solana in the area of smart contracts next to Ethereum.
The report also emphasized the low historical correlation of XRP with Bitcoin and Ethereum. This different price behavior offers a diversification advantage for institutional portfolios that strive for a balance between risk and performance. The analysis of Wisdomtree supports the inclusion of XRP as a strategic asset, especially since institutional investors are increasingly going beyond a pure Bitcoin strategy.
XRP ETF registration and institutional movements
In 2024, Wisdomtree was submitted by the US stock exchange supervision SEC Application on an XRP ETF. The “WisdomTree XRP Fund“ If a regulated commitment in XRP will be offered and noted on the Chicago stock exchange – the ticker symbol has not yet been determined.
The ETF shares are placed in blocks of 5,000 pieces and withdrawn, whereby a daily reference course is used, which is based on the most important trading platforms on the XRP trap courses. Wisdomtree Digital Commodity Service will act as a sponsor of the trust, while Bny Mellon will take over the administration.
The application follows a preliminary registration in Delaware and marks another step towards regulated crypto investments. While the US government mentioned XRP as part of a strategic inventory of digital assets, she explained that there are no current plans to hoard the token.
XRP advocates argue that institutional investors are already positioning themselves in XRP. They refer to the classification of Wisdomtree and the submission of an ETF as indicators of a growing professional interest in the asset. The report signals that the “intelligent money” XRP sees a long -term, utility -oriented addition to Bitcoin’s value -conservation status.
Scarcity and regulatory momentum determine the outlook
The Wisdomtree report also describes the XRP’s dynamics based on scarcity. There is a quantity of 100 billion tokens, of which 58.55 mrd are currently in circulation. Ripple manages the release of XRP via a monthly trust system, with unused tokens flow back to the trust account.
XRP follows a deflational model in which the transaction fees are deducted from the overall offer. WisdomTree believes that this structure corresponds to the Bitcoin scarcity mechanism and receives the attractiveness of XRP as a long -term form of investment.
In the meantime, the regulatory environment for XRP is moving. On May 8, the SEC accepted a comparison with Ripple against payment of $ 50 million. The second chairman Paul Atkins explainedthat the authority will advance a structured regulatory development in the future instead of taking legal action in order to solve controversial problems.
As far as market development is concerned, XRP recently rose to $ 2.65 in the middle of general crypto profits caused by the trade war between the USA and China. According to liquidations worth $ 35 million, of which $ 22.82 million were in long positions, the token fell to $ 2.44. Technical indicators such as the RSI indicate a declining upward moment.
According to Geoffrey Kendrick, head of the research department for digital assets at the British Bank Standard Chartered, XRP can reach $ 5.50 this year. His forecast continues to 8 $ 2026, $ 10 2027 and $ 12.25 in 2029 – a forecast increase of 382%.
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