Bitcoin Hashrate: the Definitive Guide and Optimal Hedging Strategies for Miners
Recently many people in the crypto space have been talking about the China crackdown on crypto mining and consequent drop in the Bitcoin hashrate. But what is it exactly? In the first part of this article we explore in detail what is the Bitcoin hashrate, and present an analysis of data related to it to […]
Quantitative Research
How Wash Trading Dominates the Crypto Market
Investors always prefer financial assets with high liquidity and reflective of the real trading conditions, with no wash trading or market manipulation. However, sometimes the public data may not be trustful, like in the case of crypto markets. In this research article, we analyzed historical volume data of a highly popular cryptocurrency exchange and evaluated […]
Crypto
How to Profit from Bitcoin Volatility with an Active Long-Short Crypto Investment Strategy
Bitcoin is a volatile asset. However, it also provides investors opportunities in reaping the excess returns associated with risks. This report analyzes the performance of Bitcoin and a Long-Short Portfolio investing in Bitcoin and other crypto currencies. The analysis shows that the Long-Short Portfolio performance, which is almost uncorrelated to Bitcoin, beats the Bitcoin performance, […]
Investing
How to Gain Higher Risk-Adjusted Returns by Investing in Bitcoin
Investors today are facing many challenges in financial markets. Bitcoin, as one of the new investment assets, received increasing attention. This research paper analyzes the performance of Bitcoin from 2013 until today, with a special focus on its performance during the pandemic. We found that including Bitcoin in a portfolio would reward investors with higher […]
Investing
Crypto Hedge Funds: Don’t Pay Alpha for Beta
Many crypto hedge funds were launched in the past 2 years because of a significant interest growth in cryptocurrencies. While some of these funds include experienced teams coming from other hedge funds, many of them were actually setup to make a quick profit during the hype. In this article we will show why most so […]
Crypto
How to Trade and Hedge Cryptocurrencies and Related Transaction Cost Analysis (TCA)
Cryptocurrencies experienced significant interest during the past 2 years. Many investors and companies became attracted to the market because of the apparently high returns they could get from this new asset class. At the same time, those investors who bought cryptocurrencies in late 2017 sustained a significant loss and drawdown in the bear market of […]
Crypto
ICO Treasury Management: Why Should ICO Firms Hedge their Crypto Balances?
Many companies in 2017 and 2018 decided to raise capital through an ICO by issuing tokens in exchange of cryptocurrencies like Bitcoin or Ethereum. We find that, while these firms managed to raise billions of dollars in this period, they didn’t manage their crypto holdings price risk, losing on average around 80% of the entire […]
ICO
ICO Market Analysis: What Really Drives the ICO Capital Raise Process?
Many companies in 2017 and 2018 decided to raise capital through an Initial Coin Offering (ICO). While the process seemed very promising at the beginning, it also showed its limitations around the end of 2018. In fact, many ICO’s were in fact scams, while other failed to deliver the promises towards their investors. In this […]
ICO
Crypto Index Fund: Why You Should Not Invest in It
During the past 2 years many crypto index funds emerged as a result of the increased interest in the crypto market. These products offer to their investors a basket of cryptocurrencies under the promise of higher risk-adjusted returns due to portfolio diversification. In this research article we show how this is actually far from the […]
Crypto
Crypto Market Cap Evolution and Comparison to Traditional Asset Classes
Executive Summary This article analyzes the cryptocurrency market capitalization for the top 20 cryptocurrencies. In particular, it shows the composition of market cap by cryptocurrency, how it evolved over time, and how it compares to traditional asset classes like stocks and bonds. The research finds the following: Growth in crypto market cap: cryptocurrencies have experienced […]
Crypto