Are cryptocurrencies a safe haven for equity markets? An international perspective from the COVID-19 pandemic
University College Dublin · University of Waikato · +1 more institution
Abstract
The COVID-19 pandemic provided the first widespread bear market conditions since the inception of cryptocurrencies. We test the widely mooted safe haven properties of Bitcoin, Ethereum and Tether from the perspective of international equity index investors. Bitcoin and Ethereum are not a safe haven for the majority of international equity markets examined, with their inclusion adding to portfolio downside risk. Only investors in the Chinese CSI 300 index realized modest downside risk benefits (contingent on very limited allocations to Bitcoin or Ethereum). As Tether successfully maintained its peg to the US dollar during the COVID-19 turmoil, it acted as a safe haven investment for all of the international…
Citation impact
- FWCI
- 113.32
- Percentile
- 100%
- References
- 49
Authors
3Topics & keywords
- Downside risk
- Safe haven
- Equity (law)
- Portfolio
- Economics
- Liberian dollar
- Cryptocurrency
- Financial economics