Empirical Crypto Asset Pricing

Fuente: arXiv
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Main Author: Baybutt, Adam
Format: Preprint
Published: 2024
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author Baybutt, Adam
author_facet Baybutt, Adam
contents We motivate the study of the crypto asset class with eleven empirical facts, and study the drivers of crypto asset returns through the lens of univariate factors. We argue crypto assets are a new, attractive, and independent asset class. In a novel and rigorously built panel of crypto assets, we examine pricing ability of sixty three asset characteristics to find rich signal content across the characteristics and at several future horizons. Only univariate financial factors (i.e., functions of previous returns) were associated with statistically significant long-short strategies, suggestive of speculatively driven returns as opposed to more fundamental pricing factors.
format Preprint
id arxiv_https___arxiv_org_abs_2405_15716
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Empirical Crypto Asset Pricing
Baybutt, Adam
Econometrics
We motivate the study of the crypto asset class with eleven empirical facts, and study the drivers of crypto asset returns through the lens of univariate factors. We argue crypto assets are a new, attractive, and independent asset class. In a novel and rigorously built panel of crypto assets, we examine pricing ability of sixty three asset characteristics to find rich signal content across the characteristics and at several future horizons. Only univariate financial factors (i.e., functions of previous returns) were associated with statistically significant long-short strategies, suggestive of speculatively driven returns as opposed to more fundamental pricing factors.
title Empirical Crypto Asset Pricing
topic Econometrics
url https://arxiv.org/abs/2405.15716