Safe havens for Bitcoin and Ethereum: evidence from high-frequency data

What is it about?

This study examines the potential diversification benefits of leading US tech stocks (FAANG) for cryptocurrency investors, focusing on Bitcoin and Ethereum. Using advanced analytical methods on high-frequency data from 2018 to 2023, the findings suggest that FAANG stocks serve as weak safe havens for these cryptocurrencies, particularly for Bitcoin, with varying safe-haven properties among individual stocks. These insights aim to assist investors and policymakers in cryptocurrency investment strategies.

Featured Image

Photo by Pierre Borthiry - Peiobty on Unsplash

Photo by Pierre Borthiry - Peiobty on Unsplash

Why is it important?

This study is important as it explores risk diversification for cryptocurrency investors amid high volatility, offering insights into the relationship between cryptocurrencies and leading tech stocks. Its findings aid investors in risk mitigation and contribute to academic literature, informing policymakers on effective investment strategies.

Perspectives

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This study likely emphasizes the significance of understanding risk diversification in cryptocurrency investments, mainly through the lens of established tech stocks. Of its analytical rigor and relevance for investors and policymakers, viewing it as a valuable contribution to the discourse on sustainable and informed investment strategies in a volatile market.

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