Strategist for cryptocurrencies, Amy Arnott from asset management firm Morningstar revealed that Cardano (ADA) will appear to join the ‘BIG THREE’ alongside Bitcoin (BTC) and Ethereum (ETH).
With a diverse project by Cardano, Arnott is convinced the network is no different from Ethereum:
"The protocol has potential technical applications. Many support Cardano's growth, and it also owns a variety of stablecoins. ”
While the dumping of institutional investors is targeting cryptocurrencies as investment assets, Arnott also hopes to diversify cryptocurrency index funds in the form of exchange traded funds (ETFs).
At the very least, the introduction of crypto-based ETFs is a safe way for this group, including retail investors to be protected from high volatility (uncertainty).
However, for now, the Securities and Exchange Commission (SEC) has not yet approved any crypto ETF applications in the United States (US).
Most recently on Monday, Goldman Sachs filed a decentralized financial ETF (DeFi) and blockchain equity to the agency a week after Grayscale launched a special fund for investor exposure to DeFi.
In fact, volatility makes it difficult to determine the right price for a cryptocurrency. For example Ethereum which is the mainstay of the DeFi and NFT market, should already display a price floor based on its widespread use.
The same is also unlikely to happen to Cardano once the network launches support for the smart contract after the expiration of Alonzo’s hard fork.
