The inclusion of Bitcoin and other cryptocurrencies in Investors’ Portfolios

Cryptocurrencies have become an attractive asset class for all types of investors. A relevant question is whether their inclusion in portfolios improves their risk-return output. In this chapter, we conduct an empirical study of the effect of the inclusion of Bitcoin and Ethereum in the portfolio of...

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Detalles Bibliográficos
Autores: Lamothe López, Prosper, Lamothe Fernández, Prosper, Rodríguez Valencia Leslie
Tipo de recurso: capítulo de libro
Fecha de publicación:2024
País:España
Institución:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/754641
Acceso en línea:https://hdl.handle.net/10486/754641
https://dx.doi.org/10.5772/intechopen.1003990
Access Level:acceso abierto
Palabra clave:Cryptocurrency
Portfolio performance
Diversification
Bitcoin
Ethereum
Economía
Descripción
Sumario:Cryptocurrencies have become an attractive asset class for all types of investors. A relevant question is whether their inclusion in portfolios improves their risk-return output. In this chapter, we conduct an empirical study of the effect of the inclusion of Bitcoin and Ethereum in the portfolio of a European investor. Additionally, we analyze the results of previous studies on this question under other assumptions. The empirical data are overwhelming regarding the attractiveness of Bitcoin and by extension other cryptocurrencies as an asset class. The important question is whether this appeal is temporary and will eventually disappear so investors do not have to worry about this new asset class. In the chapter we discuss this issue