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Ethereum as a Hedge: The intraday analysis

Author

Listed:
  • Artem Meshcheryakov

    (San Jose State University)

  • Stoyu Ivanov

    (San Jose State University)

Abstract

In this study, we examine on intraday basis Ether - the token or cryptocurrency based on the Ethereum platform. Ether is the second largest crypto-currency, together with Bitcoin they dominate the cryptocurrency universe and account for almost 70% of combined market share. Similar to Bitcoin, Ethereum experienced rapid growth in price from a few cents per Ether after its introduction in 2015 reaching maximum of $1,432.88 on January 13, 2018. In this paper, we study whether Ethereum crypto-currency is a hedge, diversifier or a safe haven asset. We find that Ethereum crypto-currency is a hedge against the US stock and gold markets. Also, Ethereum tends to behave as a safe haven for gold markets. When currency markets are concerned, we document that Ethereum is a diversifier for the US Dollar.

Suggested Citation

  • Artem Meshcheryakov & Stoyu Ivanov, 2020. "Ethereum as a Hedge: The intraday analysis," Economics Bulletin, AccessEcon, vol. 40(1), pages 101-108.
    • Handle: RePEc:ebl:ecbull:eb-19-01010
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    References listed on IDEAS

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    Cited by:

    1. Siddique, Md Abubakar & Nobanee, Haitham & Karim, Sitara & Naz, Farah, 2023. "Do green financial markets offset the risk of cryptocurrencies and carbon markets?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 822-833.
    2. Będowska-Sójka, Barbara & Kliber, Agata, 2022. "Can cryptocurrencies hedge oil price fluctuations? A pandemic perspective," Energy Economics, Elsevier, vol. 115(C).
    3. Kliber, Agata, 2022. "Looking for a safe haven against American stocks during COVID-19 pandemic," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    4. Osman, Myriam Ben & Galariotis, Emilios & Guesmi, Khaled & Hamdi, Haykel & Naoui, Kamel, 2023. "Diversification in financial and crypto markets," International Review of Financial Analysis, Elsevier, vol. 89(C).
    5. Kołodziejczyk, Hanna, 2023. "Stablecoins as diversifiers, hedges and safe havens: A quantile coherency approach," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    6. Wen, Zhuzhu & Bouri, Elie & Xu, Yahua & Zhao, Yang, 2022. "Intraday return predictability in the cryptocurrency markets: Momentum, reversal, or both," The North American Journal of Economics and Finance, Elsevier, vol. 62(C).
    7. Będowska-Sójka, Barbara & Kliber, Agata, 2021. "Is there one safe-haven for various turbulences? The evidence from gold, Bitcoin and Ether," The North American Journal of Economics and Finance, Elsevier, vol. 56(C).

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    More about this item

    Keywords

    ether; ethereum; crypto-currency; blockchain; hedge; diversifier; safe Gaven;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services

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