Cardano (ADA) Has Potential to Become a Mainstream Crypto –Morningstar Portfolio Manager

Amy Arnott, Portfolio Manager at the American investment research giant, Morningstar, has recently stated that Cardano (ADA), the fifth-largest cryptocurrency by market capitalization, has the potential to join the likes of Bitcoin (BTC) and Ethereum (ETH), to become a mainstream cryptocurrency.

In an interview with Business Insider a few days ago, Arnott discussed cryptocurrency regulation, Ethereum (ETH), and Cardano (ADA). According to the strategist, crypto and blockchain have what it takes to attract the interest of institutional investors.

Arnott also spoke particularly about the potential of Cardano and its similarity to Ethereum, the largest smart contracts platform.

Amy Arnott noted:

“Cardano is similar to Ethereum in that it’s a protocol that has a lot of potential technical applications. There’s a lot of enthusiasm about Cardano and also various stablecoins.”

In a blog post on Morningstar official website, Arnott wrote:

“Despite its huge gains in the past, ether’s extreme volatility will likely rule it out for many conventional investors. As with bitcoin, it’s also difficult to pin down what its underlying value should be because it doesn’t generate cash flows.”

She went further to share her thought in relation to the institutional adoption of cryptocurrencies:

“The interesting thing that’s happened over the past year or so is that institutional investors have been far more willing to adopt cryptocurrencies and look at them as an investment asset. As that trend continues, we’ll see other cryptocurrencies become more mainstream.”

What Could Aid the Mainstream Adoption of Cardano and Other Cryptocurrencies

According to the Morningstar strategist, it has been very difficult for mainstream investors to gain exposure to cryptocurrencies because the United States Securities and Exchange Commission (SEC) is yet to approve any crypto exchange-traded-fund (ETF). Once this starts happening, vast adoption would follow.

Arnott also stressed on the damage that regulatory uncertainty of cryptocurrency has caused, she thinks has been behind most volatilities witnessed in the crypto market lately:

“Regulatory risk is a big issue – that’s been the driving factor behind a lot of the volatility over the past few months. If governments around the world clamp down on crypto in general, or bitcoin and ether specifically, that would be a large negative.”

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Solomon Odunayo

Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.