Cryptocurrency in 2021

Cryptocurrencies in 2021 are like Beanie Babies in the mid-1990s: of high interest among a wide variety of people. Many are watching from the sidelines for what's next or only dipping a toe in. Others, however, think they'll hit pay dirt if they buy the right crypto at the right time. Is Bitcoin the best crypto to buy today? What about Litecoin? Or Ethereum?

Of course, only time will tell whether today’s interest in all things crypto is a speculative fad or whether crypto really can be a viable, emerging asset class for an investor’s tool kit. But either way, digital currencies are likely here to stay, at least in some form.

“Based on the growing acceptance of cryptocurrency by financial institutions and regulators, there are signs that it might be around for a while,” says sector director Kris Inton.

In this special report, Morningstar’s researchers, portfolio specialists, and analysts demystify the crypto craze by answering a few key questions: What is cryptocurrency and how does it work? Should I add cryptocurrency to my portfolio, and if yes, how? Do my funds already own crypto, and is that good or bad?

The Basics

Crypto What? The how, what, and why of cryptocurrency.

Considering Crypto? Here's What to Think About As the investment world goes crazy for crypto, Morningstar Investment Management's Dan Kemp explains what to consider before putting it in your portfolio.

A Basic Glossary of Terms for Crypto Newbies Crypto can be incredibly complicated, but understanding the basic terminology is a good place to start.

Cryptocurrencies and Your Portfolio

The Case For (and Against) Bitcoin as Digital Gold Despite some surface similarities, the two assets are fundamentally different.

Does Your Portfolio Need Bitcoin? Maybe, but keep it to a minimum.

The Conventional Investor's Guide to Bitcoin Is the currency worth owning?

How a Little Bitcoin Can Change Your 60/40 Portfolio a Lot After bitcoin's recent slide, it may be tempting to buy the dip. Here's what to consider when thinking about adding it to a balanced portfolio.

The Promise and Peril of Ethereum Ethereum has the potential to revolutionize the entire financial landscape, but its native cryptocurrency is a high-risk investment asset.

The Promise and Peril of Ethereum Part II The cryptocurrency has generated massive gains at times, but extreme volatility will likely rule it out for many conventional investors.

Who Wants Cryptocurrency in Their Retirement Plan? Most people remain hesitant, but there's a small crypto-curious contingent.

Cryptocurrencies and Funds

These Aren't the Bitcoin ETFs You're Looking For These new exchange-traded funds will invest in bitcoin futures, not bitcoin itself.

Are Crypto ETFs Coming? The SEC continues to sort out its regulatory concerns.

Are Cryptocurrencies Lurking in Your Funds? Here's who has dipped a toe in the crypto pool.

Bitcoin Could Spread to More Fixed-Income Funds It's most likely to appear in more-aggressive strategies, so mind your manager's approach.

Push into Crypto Triggers Downgrade for This Fund Big changes diminish the appeal of Emerald Banking and Finance.

What Do Fund Managers Really Think of Cryptocurrency? Are they looking at it with open eyes or giving it the side eye?

For Advisors

Understanding Regulation on Cryptocurrency Contrary to popular belief, there is more substantial regulatory clarity for cryptoassets than many advisors think.

Cryptocurrency: How Advisors Can Get Up to Speed Education and resources so your clients don't end up knowing more than you.

What's Top of Mind for Advisors When it Comes to Crypto? Here's what Tyrone Ross, co-founder and CEO of Onramp Invest, thinks advisors should be considering.