Is There a Value Premium in Cryptoasset Markets?

Cryptoasset markets have experienced a paradigm shift over the past decade: originally regarded as a purely speculative investment, institutional investors are starting to appreciate cryptoassets’ unique return drivers. As of 2020, 45% of institutional investors in Europe and 27% in the US  have exposure to cryptoassets, either directly or via futures contracts. Despite considerable interest in this evolving asset class, the question of what factors drive expected returns in cryptoassets remains largely unexplored.   On the one hand, Cheah and Fry (2015) argue that Bitcoin […]