Crypto Investing Guide

What information is key to investing in crypto-assets? In their May 2022 paper entitled “An Investor’s Guide to Crypto”, Campbell Harvey, Tarek Abou Zeid, Teun Draaisma, Martin Luk, Henry Neville, Andre Rzym and Otto Van Hemert offer insights for investors seeking exposure to crypto-assets. They discuss a variety of tokens, highlighting their functionality and investment properties. They critically compare popular crypto-asset valuation methods. They contrast buy-and-hold investing with volatility-managed and trend-following strategies. They focus on return data starting 2017 as representative of the future, using some intraday data to boost statistical power. They describe custody and regulatory considerations for institutional investors. Using crypto-asset and contemporaneous conventional asset data as available (as early as 2010) through April 2022, they find that:

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