An Event Study on Investor Behavior in Digital Collectibles

In the current financial market, the coexistence of stock volatility and the rapid development of the virtual market is evident. Still, research on the behavioral connection between traditional stock and virtual asset investment lacks clarity regarding the internal mechanisms of cross-market behavioral shifts. Thus, exploring the transformation of cross-market investor behavior is of great significance. Taking Christie’s “Basquiat Digital Collectibles Auction” as a major event, this paper applies the event study method, constructing a [-30, 30] day window, collecting stock and digital collectible investors’ trading, holdings, and other data, to reveal the characteristics and patterns of cross-market investment behaviour shifts. The study finds: when traditional stock investors participate in digital collectibles, their motivation shifts from “value-investment orientation” to being driven by “IP speculation and novelty-seeking psychology”; risk preference becomes more aggressive, decision-making speeds up, and behavioral finance phenomena such as herding and overconfidence are more prominent in the virtual asset scenario; Christie’s brand influence becomes one of the key factors driving investor cross-market behavior transformation. This study supplements the theoretical content of investment behavior in virtual assets and provides practical references for investors to adjust decision-making and for regulators to improve market governance.