Are cryptos different? Evidence from retail trading

• 成果类型: Article
• 署名作者: Kogan, Shimon; Makarov, Igor; Niessner, Marina; Schoar, Antoinette
• 署名单位: Reichman University; University of Pennsylvania; University of London; London School Economics & Political Science; Indiana University System; Indiana University Bloomington; Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103897
• 发表日期: 2024
• 关键词: Cryptocurrencies FinTech Retail trading Social finance

摘要

Trading in cryptocurrencies grew rapidly over the last decade, dominated by retail investors. Using data from eToro, we show that retail traders are contrarian in stocks and gold, yet the same traders follow a momentum-like strategy in cryptocurrencies. The differences are not explained by individual characteristics, investor composition, inattention, differences in fees, or preference for lottery-like assets. We conjecture that retail investors have a model where cryptocurrency price changes affect the likelihood of future widespread adoption, which leads them to further update their price expectations in the same direction.