Abstract
This study conducted the econometric analysis to test the hedge and safe haven effects of Non-fungible Tokens (NFTs) on major traditional asset markets in the global financial system. We investigate the estimates of these effects in times of extreme market conditions and the COVID-19 crisis. Our empirical results show evidence of the hedge and safe haven properties of NFTs, confirming two main findings: (i) NFTs act as a hedge and safe haven for particular stock markets and oil, bond, and USD indices, even though the degree of effects varies across asset classes; and (ii) NFTs also serve as sheltering facilities for the markets mentioned above, with more substantial safe haven benefits for bond and USD indices during the recent pandemic crisis.
| Original language | English |
|---|---|
| Pages (from-to) | 1278-1285 |
| Number of pages | 8 |
| Journal | Applied Economics Letters |
| Volume | 31 |
| Issue number | 14 |
| DOIs | |
| State | Published - 2024 |
| Externally published | Yes |
Keywords
- COVID-19 crisis
- econometric analysis
- hedge effect
- Non-fungible tokens
- safe haven effect