The Impact of Returns and Influence of Crypto Assets on Different Asset Classes

Abstract

The inception of financial digital assets has attracted young, innovative and tech savvy entrepreneurs, which created the foundation for a new breed of investors. The participants of this ecosystem went through some paradigm shifts till they captured the attention of institutional investors. This market event has pushed the digital markets to new levels and forced the ecosystem to adapt to a traditional investment methodology. This paper will analyze the relationship of crypto assets with other traditional and alternative asset classes, from the perspective of their returns. The aim of this study is to analysis and explore the impact of the investment behavior, over other asset classes, of the participants which operate in dynamic, volatile and high-risk digital markets. We will try to assess how the returns generated in this novel asset class can influence the possibility of portfolio diversification, which extends towards traditional finance world and other alternative markets.

Keywords

• financial digital assets
• crypto assets
• volatility
• returns