Cardano (ADA) might become one of the "Big Three" mainstream cryptocurrencies, according to a leading portfolio strategist at Morningstar, a $244 billion asset management firm. Morningstar's crypto-focused strategist Amy Arnott tells Business Insider that investors wishing to get into digital assets want to avoid stomach-wrenching volatility.
If a crypto-based exchange-traded fund (ETF) existed, Arnott believes it would be the greatest way for investors to avoid excessive volatility. “A diversified crypto index fund in the form of an ETF is something I'd really like to see... In the United States, the SEC has yet to approve any ETFs, making it extremely difficult for mainstream investors to obtain exposure to cryptocurrencies. There appears to be a lot of internal dispute at the SEC about whether they should go ahead with this – it's a big trend that a lot of investors need to know about, but they also need to safeguard investors.”
Cardano, together with Bitcoin and Ethereum, might become one of the "Big Three" popular cryptocurrencies, according to Arnott, if generally accepted digital assets are the next best thing after an ETF. “Cardano is similar to Ethereum in the sense that it is a protocol with a wide range of technical applications... Cardano, as well as alternative stablecoins, have sparked a lot of interest...
The intriguing thing that has happened in the last year or so is that institutional investors have become much more open to adopting cryptocurrencies and considering them as an investment asset. Other cryptocurrencies will become more widespread if this trend continues.”
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