Portfolio strategist of the American financial company Morningstar believes that Cardano (ADA), together with bitcoin and ether, could form the “big three” of major cryptocurrencies.
Amy Arnott, portfolio strategist for cryptocurrencies at Morningstar, shared her views on cryptocurrency regulation in an interview
The Insider… Arnott has endorsed the Cardano cryptocurrency, created by Ethereum co-founder Charles Hoskinson, as a promising altcoin that could join Bitcoin and Ether to form the Big Three major cryptocurrencies.
Like Ethereum, Cardano plans to implement decentralized financial services in 2021. The platform will soon be able to support smart contracts. In 2021, the ADA rate soared from $ 0.18 to $ 1.16 – by 544%.
Arnott clarified:
“Cardano is similar to Ethereum in that it has many potential technical applications,” said Arnott. “There is a lot of enthusiasm for Cardano as well as the various stablecoins.”
Amy Arnott would like to see an indexed cryptocurrency fund in the form of an exchange-traded fund (ETF).
“The interesting thing that has happened over the past year is that institutional investors have been more inclined to accept cryptocurrencies and view them as an investment asset. As this trend continues, we will see other cryptocurrencies become more popular, ”she added.
Potential investors are ready to invest in cryptocurrencies, but they want to see relatively safe financial instruments that will give them access to the resource without having to track volatility and potential risks.
The creation of a crypto ETF can partially reduce the volatility of cryptocurrencies and attract traditional investors with an acceptably low risk profile. The investor receives professional asset management. The fund’s securities are characterized by high liquidity and provide a wide diversification of assets, which does not require large-scale investments from investors.
“I would really like to see an ETF in the form of an ETF for a diversified cryptocurrency. But the SEC still hasn’t approved any crypto ETFs in the United States, making it very difficult for investors to access cryptocurrencies. This is exactly what the crypto industry needs to go mainstream, ”Amy Arnott told Insider.
In June, SEC Commissioner Hester Peirce said that the idea of a Bitcoin ETF in the US is long overdue.
“With each passing day, the objections that we have used in the past to deny approval are getting weaker,” said
CNBC Pier.
However, the SEC continues to reject proposals to register ETFs. This means that investors who want to invest in cryptocurrencies have no choice but to take on all the risks associated with the use of cryptocurrencies in their operations.
World experience
The world’s first exchange-traded fund Purpose Bitcoin ETF on Bitcoin is registered in Canada. Funds under management
Purpose Bitcoin ETF reached $ 900 million.
The fund was launched on February 18 and is listed on the Toronto Stock Exchange. According to Glassnode, the Purpose Bitcoin ETF has accumulated 22,390 BTC. On the exchange, it is traded under two tickers: BTCC.B – in Canadian dollars, and BTCC.U in US dollars. Asset management company Purpose Investments charges a 1% commission for managing the exchange-traded fund.
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