Publication Date

1-1-2020

Document Type

Article

Publication Title

Economics Bulletin

Volume

40

Issue

1

First Page

101

Last Page

108

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.

Comments

This article originally appeared in Economics Bulletin, Volume 40, Issue 1, 2020. The article can also be found online here.

Department

Accounting and Finance

Download

Share

COinS