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Factors affecting institutional investors to add crypto-currency to asset portfolios

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  • Sun, Wei
  • Dedahanov, Alisher Tohirovich
  • Shin, Ho Young
  • Li, Wei Ping

Abstract

As crypto-currency has been gained great attention in financial market, it becomes more popular among institutional investment managers’ portfolios. Thus this research makes a pioneering study to investigate the role of crypto-currencies in PE company portfolios and factors affecting the institutional investors’ investment intention in order to enhance the reliability of their investment products. Data were obtained from 253 multinational PE company investment managers who have bought and used crypto-currency. The findings suggest not only important roles or drivers but also the moderating roles of innovativeness on relationships between the investment intention and its antecedents. It suggests that price volatility doesn’t lower institutional investors’ confidence as long as the market can offer timely and accurate price change information to meet investors’ price consciousness. The result also identifies that crypto-currency with high familiarity and trust can be well-suited in institutional investors’ portfolios.

Suggested Citation

  • Sun, Wei & Dedahanov, Alisher Tohirovich & Shin, Ho Young & Li, Wei Ping, 2021. "Factors affecting institutional investors to add crypto-currency to asset portfolios," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:ecofin:v:58:y:2021:i:c:s1062940821001194
    DOI: 10.1016/j.najef.2021.101499
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    References listed on IDEAS

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    Cited by:

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    3. Ozdamar, Melisa & Sensoy, Ahmet & Akdeniz, Levent, 2022. "Retail vs institutional investor attention in the cryptocurrency market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    4. Umar, Muhammad & Ji, Xiangfeng & Mirza, Nawazish & Li, Haiping, 2022. "Crypto swings and the performance of carbon-intensive equity funds in China," Resources Policy, Elsevier, vol. 78(C).
    5. Luca Mungo & Silvia Bartolucci & Laura Alessandretti, 2023. "Cryptocurrency co-investment network: token returns reflect investment patterns," Papers 2301.02027, arXiv.org, revised Jan 2023.
    6. Jyothi Chittineni, 2022. "A Study on Cryptocurrency Investors Purchase Intentions: Revisiting the Brand Personality Theory," International Journal of Economics and Financial Issues, Econjournals, vol. 12(4), pages 28-33, July.
    7. Colombo, Jéfferson Augusto & Yarovaya, Larisa, 2024. "Are crypto and non-crypto investors alike? Evidence from a comprehensive survey in Brazil," Technology in Society, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    PE company; Crypto-currency; Competitiveness of investment products; Brand personality theory; Innovation Diffusion Theory;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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