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
Timing an Actively Managed Investment Portfolio: Not a Smart Idea
While investors are looking after the best investment managers, some also actively manage their investments by withdrawing money from the fund when markets decline and reenter when markets rally. In this report, we simulated different scenarios where investors actively manage their investment and calculated the investment performance accordingly to analyze whether it would bring a […]
Investing
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 Treasury Rates Impact All Major Financial Assets
Treasury rates have a tremendous impact on financial assets through their influence on the cost of borrowing. Therefore, understanding the relationship between treasury rates and financial assets is of primary importance. We found that while treasury rates are positively related to financial assets such as oil and US dollar, they are negatively related to S&P500 […]
Economics
Impact of Macroeconomic Factors on Financial Assets and Portfolios
This research article analyzes the influences of determinant macroeconomic factors – GDP, GDP Surprise, Inflation, and Inflation Surprise – on asset returns and asset correlations. In particular, we analyze how the previous factors impact the performance of different investment portfolios during various phases of the economic cycle. We found that portfolios that show the highest […]
Global Macro
Which Portfolios Outperformed During the Covid-19 Crisis?
This research article analyzes the performance of different portfolios in the past two years from July 2018 to July 2020 and particularly during the coronavirus pandemic. We found that multiple-asset portfolios outperform non-diversified portfolios, especially the ones focus on equities. The high risk-adjusted and robust returns of such portfolios would benefit investors in the long […]
Investing
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
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