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Are impact crypto assets a new emerging asset class for sustainable and impact investors?

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  • Vinogradova, Veronika
  • Gubareva, Mariya

Abstract

Tokenization and distributed ledger technologies are unlocking new opportunities for sustainable investors willing not only earn financial returns but also contribute towards long-term societal and environmental goals. We build the Impact Crypto Index composed of crypto assets with strong focus on impact investing and sustainability and analyze its diversification and hedging properties in combination with major cryptocurrencies and traditional market indices. Our results indicate that the Impact Crypto Index exhibits lower volatility exposure than Bitcoin and Ethereum. Moreover, it offers strong diversification potential in combination with the S&P Clean Energy Index across various investment horizons, extending the portfolio opportunities for investors seeking investments with purpose.

Suggested Citation

  • Vinogradova, Veronika & Gubareva, Mariya, 2026. "Are impact crypto assets a new emerging asset class for sustainable and impact investors?," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023633
    DOI: 10.1016/j.frl.2025.109114
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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