A top portfolio strategist from the $244-billion asset management giant Morningstar says that Cardano (ADA) could become one of the “Big Three” mainstream cryptocurrencies.

In a report from Business Insider, Morningstar’s crypto-focused strategist Amy Arnott says that investors looking to get into digital assets want to avoid stomach-wrenching volatility.

Arnott believes that a crypto-based exchange-traded fund (ETF) – if one existed – would be the best route for investors to skirt over-the-top volatility.

“What I would really like to see is a diversified crypto index fund in the form of an ETF… The SEC still hasn’t approved any ETFs in the United States which makes it very difficult for mainstream investors to gain exposure to cryptocurrencies. It seems like there’s a lot of internal debate at the SEC about whether they should go ahead with this – it’s an important trend and a lot of investors need to have access to it, but they do need to protect investors.”

If widely accepted digital assets are the next best thing after an ETF, Arnott says Cardano could become one of “the Big Three” mainstream cryptocurrencies along with Bitcoin and Ethereum.

“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…

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.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The ARK Innovation ETF has reduced its exposure to just 0.32% of its $23 billion in assets invested in Chinese companies, compared to 8% in February.

The ARK Next Generation Internet ETF still has about 3.8% invested in Chinese stocks, but that’s down from 9% earlier this year.

At the same time, Ark Invest has been buying bitcoin. The ARK Cryptocurrency U.S. Fund LLC bought $20 million in May.

Last week, the ARX Next Generation ETF bought 140,157 Grayscale shares (GBTC), just a day after buying 310,000 such shares, bringing it to a total of $11 million at the current price.

They have also bought close to a million (876,157) Coinbase shares worth more than $200 million at the current trading price, in addition to $88.74 million of Twitter shares after Jack Dorsey said bitcoin will be a “big part” of the social media company’s future.

Whether other investors will follow out of China and into bitcoin remains to be seen, but there is an estimated one trillion dollars on the move looking for new investment as the Chinese stocks sell-off deepens.

A high-profile crypto trader and analyst is optimistic about the futures of two altcoins as Bitcoin (BTC) and the crypto market gain momentum.

In a series of tweets, the pseudonymous trader, known in the industry as Kaleo, says that he is building positions in Dapper Labs’ non-fungible token (NFT) project, Flow.

Kaleo says Flow is on the edge of sharply outperforming Bitcoin, as NFT and gaming tokens such as Axie Infinity (AXS) are gaining major attention in the market.

“I punted a long on FLOW. I’ve missed out on the majority of the NFT pumps led by AXS and decided I finally needed some exposure.

The BTC chart is breaking out above higher time frame resistance dating back to the spring rally, where it was one of the leaders in the NFT race.”

On the USD base pair, Kaleo was initially hesitant to add to his position as FLOW battled with resistance on the lower timeframe at $20.96. Now Kaleo says that he’s adding to his FLOW position, as the asset dipped slightly toward $19.95, allowing for a better entry.

“Added more FLOW on the dip.”

The other asset Kaleo is trading as the market recovers is blockchain network Terra Luna (LUNA).

Against USD, Kaleo charts out LUNA forming an ascending wedge, preparing to breakout above $8.

Luna is currently trading at $9.42, up nearly two dollars since Kaleo started tweeting about the asset.

As Bitcoin trades at around $38,000, Kaleo reminds his 338,000 followers that in February, when Bitcoin traded at around $30,000, the top cryptocurrency took just one week to sail above $47,000.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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