In a cryptocurrency panel discussion with Yahoo Finance's Jennifer Schonberger, Morningstar's Amy Arnott discusses how crypto can play a role in a diversified portfolio.
JENNIFER SCHOENBERGER: Is cryptocurrency part of a diversified portfolio? Do you see it as a long term-holding?
AMY ARNOTT: It certainly can be. Crypto is definitely becoming more established as a separate asset class and moving more into the investment mainstream. It used to be more of a fringe asset that was very specialized. You didn't really hear institutional investors talking about it very much until, I would say, the past two or three years.
So you have the global cryptocurrency market is now about 2.6 trillion in outstanding market cap. And so given the size as well as the phenomenal returns that we've seen in crypto, it's definitely something that long-term investors should consider if they're more risk-tolerant.