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Abstract

Details

An Introduction to Algorithmic Finance, Algorithmic Trading and Blockchain
Type: Book
ISBN: 978-1-78973-894-0

Article
Publication date: 1 December 2020

Gary Low and Terence Tan

To address recent cases and the applicable legal principles relating to cryptocurrency, and to contribute to legal thought in this developing area of law.

1675

Abstract

Purpose

To address recent cases and the applicable legal principles relating to cryptocurrency, and to contribute to legal thought in this developing area of law.

Design/methodology/approach

This article considers recent cryptocurrency related cases in Singapore, Canada and the United Kingdom, and then considers the implications of the developing law in relation to proper causes of action and issues of practical asset recovery relating to the enforcement of judgments.

Findings

The intangible and highly movable nature of cryptocurrency places a premium on decisive asset recovery. The cases also suggest that injunctions remain a useful and effective debt recovery tool, especially when coupled with quick investigative action to trace cryptocurrency payments. However, the law remains unsettled as to the most appropriate cause of action for a claim in cryptocurrency or how a debt in cryptocurrency can be subject to execution. These issues raise the fundamental question of the nature of cryptocurrency, whether it belongs to an existing category of property, or if it is sui generis.

Practical implications

Cryptocurrency remains relatively novel and usage is increasing but not widespread. Users of cryptocurrency and lawyers involved in transactions or disputes involving cryptocurrency would benefit from a broader understanding of the legal issues

Originality/value

This article provides expert analysis from experienced litigation lawyers familiar with the concepts behind cryptocurrency.

Details

Journal of Investment Compliance, vol. 21 no. 2/3
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 2 July 2018

Vadim Avdeychik and Justin Capozzi

This paper aims to provide an overview of recent US Securities and Exchange Commission (SEC) Division of Investment Management staff (“Staff”) guidance related to investment funds…

683

Abstract

Purpose

This paper aims to provide an overview of recent US Securities and Exchange Commission (SEC) Division of Investment Management staff (“Staff”) guidance related to investment funds registered under the Investment Company Act of 1940 that seeks to provide exposure to cryptocurrencies or cryptocurrency-related products.

Design/methodology/approach

This paper provides analysis regarding the Staff’s view on registered investment companies that intend to invest in cryptocurrencies or cryptocurrency-related products, including an overview of the questions posed by the Staff with respect to registered investment companies that seek to hold cryptocurrencies or cryptocurrency-related products, which are divided into five categories: valuation, liquidity, custody, arbitrage (for exchange-traded funds) and potential manipulation and other risks.

Findings

The Staff is asking for additional information from industry participants to fully analyze and evaluate registered investment companies that seek to invest in cryptocurrencies.

Practical implications

The industry should continue to provide information to the Staff with the short-term goal of fostering an open dialogue and with the long-term goal of launching a registered investment company that invests in cryptocurrencies or cryptocurrency-related products.

Originality/value

This paper provides practical guidance from experienced lawyers of the Investment Company Act and Securities Act.

Open Access
Article
Publication date: 24 May 2024

Olusegun Felix Ayadi, Oluseun Paseda, Babatunde Olufemi Oke and Abiodun Oladimeji

Given the many activities of Nigerian investors in the crypto ecosystem, this paper investigates the level of their awareness, attitudes, risk tolerance, experience, reasons for…

Abstract

Purpose

Given the many activities of Nigerian investors in the crypto ecosystem, this paper investigates the level of their awareness, attitudes, risk tolerance, experience, reasons for investing and level of financial literacy.

Design/methodology/approach

The research approach is based on a self-administered questionnaire. The Organization for Economic Cooperation and Development (OECD) permitted the use of its reliable and validated survey instrument, administered in Malaysia, the Philippines and Vietnam in 2019. The results are tabulated and analyzed.

Findings

The key results include the participation of respondents, who are generally young males, not fully financially literate but risk-averse. Many held the false view that investing in global markets is a higher risk than in national markets. Their reasons for investing in crypto include the fear of missing out on good opportunities and the desire to have fun. The results also revealed that social media, conversations with non-experts and online articles are among the most used investment information sources, highlighting the role of digital platforms and informal discussions in shaping perceptions and knowledge about cryptocurrencies. Investments in cryptos are financed through savings, regular monthly budgets or borrowed from friends or family. As for specific attitudes to risk, the results suggest that for most respondents, preserving their invested capital is of paramount importance.

Originality/value

The importance of this research also resides in the possibility of comparing the crypto ecosystem in Asia with Nigeria because the same OECD data instrument is employed in data collection. Moreover, this study is the most comprehensive research about Nigerian investors in cryptocurrencies.

Details

Journal of Internet and Digital Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2752-6356

Keywords

Article
Publication date: 31 May 2024

Yasmine Snene Manzli and Ahmed Jeribi

This paper aims to investigate the safe haven feature of Bitcoin, gold and two gold-backed cryptocurrencies (DGX and PAXG) against energy and agricultural commodities (crude oil…

Abstract

Purpose

This paper aims to investigate the safe haven feature of Bitcoin, gold and two gold-backed cryptocurrencies (DGX and PAXG) against energy and agricultural commodities (crude oil, natural gas and wheat) during the COVID-19 pandemic, the Russia–Ukraine conflict and the Silicon Valley Bank (SVB) collapse.

Design/methodology/approach

The authors use the threshold GARCH (T-GARCH)-asymmetric dynamic conditional correlation (ADCC) model to evaluate the asymmetric dynamic conditional correlation between the return series and compare the diversifying, hedging and safe-haven ability of Bitcoin, gold and the two gold-backed cryptocurrencies (DGX and PAXG) against financial swings in the commodity market during the COVID-19 outbreak, the Russian–Ukrainian military conflict and SVB collapse. The authors also calculate the hedging ratios (HR) and hedging effectiveness index (HE). The authors finally use the wavelet coherence (WC) approach to check our results’ robustness and further investigate the impact of the three crises on the relationship between Bitcoin, gold gold-backed cryptocurrencies and commodities.

Findings

The results show that PAXG serves as a strong hedging instrument while gold, Bitcoin and DGX act as strong diversifiers during normal times. During crises, gold outperforms Bitcoin as a diversifier and a safe haven against commodities. Gold-backed cryptocurrencies also exhibit strong performance as diversifiers and safe havens. HR results indicate that Bitcoin and DGX are more cost-effective for commodities risk mitigation than gold and PAXG. In terms of hedging effectiveness, gold and PAXG emerge as the best hedging instruments for commodities, while DGX is considered the worst one. Bitcoin shows superior hedging against oil compared to wheat and gas risks. Moreover, the results of the WC approach confirm those of the T-GARCH-ADCC results in both the short and long run.

Originality/value

This paper provides a comprehensive analysis of the diversification ability of gold, Bitcoin and gold-backed cryptocurrencies during different crises (the COVID-19 pandemic, the Russia–Ukraine conflict and the SVB collapse). By taking into consideration gold-backed cryptocurrencies, the authors expand the understanding of safe havens beyond conventional assets.

Details

Journal of Financial Economic Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 16 May 2024

Sayantan Bandhu Majumder

The purpose of the study is to analyze the hedging abilities of the cryptocurrencies vis-à-vis gold against macroeconomic shocks in four emerging economies, India, China, Brazil…

Abstract

Purpose

The purpose of the study is to analyze the hedging abilities of the cryptocurrencies vis-à-vis gold against macroeconomic shocks in four emerging economies, India, China, Brazil and Russia.

Design/methodology/approach

Using the monthly data from January 2013 to April 2023, the paper analyses the response of Cryptocurrencies vis-à-vis gold prices to three different macroeconomic shocks, namely, the economic policy uncertainty shock, the financial uncertainty shock and the inflation shock, within a VAR framework with the help of the Generalized Impulse Response Function.

Findings

Both gold and cryptocurrencies have limited hedging abilities against macroeconomic shocks across countries. In India, bitcoin has become the new digital gold, while in China, it is not bitcoin but rather gold that retains its hedging abilities. Neither bitcoin nor gold, Binance Coin or Cardano, are found to be the new digital gold in Brazil and Russia.

Originality/value

The paper compares the top nine cryptocurrencies with the traditional asset gold in terms of their hedging potential against macroeconomic shocks in emerging countries.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 31 May 2024

Le Thanh Ha

This study aims to investigate connections between the development of robotic and artificial intelligence (AI) and green crypto investments. The author also explores the…

Abstract

Purpose

This study aims to investigate connections between the development of robotic and artificial intelligence (AI) and green crypto investments. The author also explores the influences of global uncertainty shocks like the COVID-19 pandemic and international conflicts on the role of each channel.

Design/methodology/approach

In this research, the author uses a cutting-edge model-free connectedness approach to investigate the relationships between the development of Global X Robotics and AI (BOTZ) and the volatility of green crypto investments from November 9, 2017 to March 24, 2023.

Findings

In the sample duration, the findings reveal a two-way link between AI and green/nongreen cryptocurrencies. Throughout the examined period, BOTZ has been a net receiver of shocks as determined by the net total connectedness. Among the main spillover shock carriers in the system, green cryptocurrencies are the most significant. The net pairwise directional connectivity reveals that green cryptocurrencies controlled BOTZ throughout the analyzed time, particularly during the COVID-19 era as well as the Ukraine–Russia crisis. According to the findings, the proposed system is vulnerable to a high level of indication influence.

Practical implications

The results have important policy implications for investors and governments, as well as methods from the spillovers across the various indicators and their interconnections. Sharp information on the primary contagions among these indicators aids politicians in designing the most appropriate policies.

Originality/value

To the best of the authors’ knowledge, this paper is the first to look at the link between AI, technological advancement and green cryptocurrency investing. Second, this study developed a methodology for examining instability links between various factors that is more appropriate for investigating these linkages. This study investigates the links between AI, technical advancement and green digital currencies using a cutting-edge model-free connectivity method. This work is also the first to examine the interconnection between volatility derived from AI, technological development and green cryptocurrency investments in light of unknown events, such as the COVID-19 pandemic and the Ukrainian–Russian conflict. Finally, this study includes a daily database from the BOTZ fund, which attempts to invest in firms that stand to gain from rising robotics and AI use. Cardano (ADA), IOTA, NANO (XNO), Stellar Lumens and Tron are examples of green cryptocurrencies, whereas Bitcoin is an example of a nongreen cryptocurrency. These virtual currencies are being used to investigate the relationship between investor mood and green and nongreen digital currencies. The data set spans the period from November 9, 2017 to March 24, 2023.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 3 June 2024

Sabri Burak Arzova, Ayben Koy and Bertaç Şakir Şahin

This study investigates the effect of the day of the week on the volatility of cryptocurrencies. Thus, we reveal investors' perceptions of the day of the week.

Abstract

Purpose

This study investigates the effect of the day of the week on the volatility of cryptocurrencies. Thus, we reveal investors' perceptions of the day of the week.

Design/methodology/approach

The EGARCH model consists of the day of the week for 2019–2022 and the volatility of 11 cryptocurrencies.

Findings

Empirical results show that the weekend harms cryptocurrency volatility. Also, there was positive cryptocurrency volatility at the beginning of the week. Our findings show that weekdays and weekends significantly impact cryptocurrency volatility. Besides, cryptocurrency investors are sensitive to market movements, disclosures, and regulations during the week. Holiday mode and cognitive shortcuts may cause cryptocurrency traders to remain passive on weekends.

Research limitations/implications

This study has some limitations. We include 11 cryptocurrencies in the analysis by limiting cryptocurrencies according to market capitalizations. Further studies may analyze a larger sample. In addition, further studies may examine the moderator and mediator effects of other financial instruments.

Practical implications

The empirical results have research, social and practical conclusions from different aspects. Our analysis may contribute to determining trading strategies, risk management, market efficiency, regulatory oversight, and investment decisions in the cryptocurrency market.

Originality/value

The calendar effect in financial markets has extensive literature. However, cryptocurrencies' weekday and weekend effect needs to be adequately analyzed. Besides, studies analyzing cryptocurrency volatility are limited. We contribute to the literature by investigating the impact of days of the week on cryptocurrency volatility with a large sample and current data.

Details

International Journal of Quality & Reliability Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 19 April 2024

Devid Jegerson and Charilaos Mertzanis

In the evolving landscape of global remittances, this study systematically explores cryptocurrency's transformative impact on remittance services through a comprehensive…

Abstract

Purpose

In the evolving landscape of global remittances, this study systematically explores cryptocurrency's transformative impact on remittance services through a comprehensive literature review and bibliometric analysis.

Design/methodology/approach

Through meticulous PRISMA-guided analysis, the research identifies cryptocurrency technology as a pivotal force in enhancing remittance efficiency, reducing costs and broadening access contributing significantly to financial inclusion.

Findings

Findings revealed that cryptocurrency technology could significantly enhance remittance services, offering improved efficiency, reduced costs and increased accessibility. This suggests a transformative potential for financial inclusion, presenting a compelling case for broader adoption and regulatory support to leverage these benefits effectively.

Research limitations/implications

By integrating recent research, this work underlines the urgent need for broader adoption and regulatory support to leverage these benefits effectively. It offers novel insights for institutions and policymakers, highlighting the potential for technology adoption in remittances to enhance financial inclusivity.

Originality/value

More cryptocurrency studies are needed to concentrate on remittance markets. Thus, this investigation constitutes a unique addition to the field. Additional investigation in this domain presents significant possibilities for future exploration and progress.

Details

Management & Sustainability: An Arab Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2752-9819

Keywords

Article
Publication date: 22 March 2024

Faisal Al Reshaid, Petek Tosun and Merve Yanar Gürce

Cryptocurrencies are becoming increasingly attractive as alternatives to traditional currencies. Although many retailers accept cryptocurrencies as a means of payment in online…

Abstract

Purpose

Cryptocurrencies are becoming increasingly attractive as alternatives to traditional currencies. Although many retailers accept cryptocurrencies as a means of payment in online shopping, consumers’ cryptocurrency adoption intention in online shopping (CCAI) is still low. This study aims to investigate the influence of attitudes, subjective norms, consumer trust, financial literacy and fear of missing out (FOMO) on CCAI.

Design/methodology/approach

A quantitative research approach was followed using a consumer survey. Hypothesized relationships were tested through regression and mediation analyses.

Findings

The results revealed that consumers could accept cryptocurrencies as a means of payment in online shopping. Attitudes, subjective norms, consumer trust and financial literacy directly and positively influence CCAI, while they indirectly affect CCAI through the mediating impact of FOMO.

Practical implications

Marketing managers should improve consumers’ knowledge about cryptocurrencies and trust in online shopping to increase CCAI. Social media marketing can be appropriate, while the advertising content can address keeping up with others and staying connected.

Originality/value

This study addresses a critical gap in the literature by empirically examining the antecedents of CCAI within an original conceptual model based on the theoretical framework provided by the theory of planned behavior. Attitudes, subjective norms, trust and financial literacy influence CCAI, where FOMO plays a significant role as a mediator.

Details

Digital Policy, Regulation and Governance, vol. 26 no. 4
Type: Research Article
ISSN: 2398-5038

Keywords

1 – 10 of over 2000