Publication Date

1-1-2020

Document Type

Article

Department

Accounting and Finance

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.

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