[en] Tokenization and distributed ledger technologies are unlocking new opportunities for sustainable investors willing not only earn financial returns but also contribute towards long-term societal and environmental goals. We build the Impact Crypto Index composed of crypto assets with strong focus on impact investing and sustainability and analyze its diversification and hedging properties in combination with major cryptocurrencies and traditional market indices. Our results indicate that the Impact Crypto Index exhibits lower volatility exposure than Bitcoin and Ethereum. Moreover, it offers strong diversification potential in combination with the S&P Clean Energy Index across various investment horizons, extending the portfolio opportunities for investors seeking investments with purpose.
Research center :
NCER-FT - FinTech National Centre of Excellence in Research
Disciplines :
Finance
Author, co-author :
VINOGRADOVA, Veronika ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Finance (DF)
Gubareva, Mariya
External co-authors :
yes
Language :
English
Title :
Are impact crypto assets a new emerging asset class for sustainable and impact investors?
NCER-FT - FinTech National Centre of Excellence in Research
Funders :
FNR - Luxembourg National Research Fund
Funding number :
NCER22/IS/16570468/NCER-FT
Funding text :
Veronika Vinogradova gratefully acknowledges that this research is a part of a running project at the University of Luxembourg, NCER-FT - FinTech National Centre of Excellence in Research and is funded in full by the Luxembourg National Research Fund (FNR), grant reference NCER22/IS/16570468/NCER-FT.
Mariya Gubareva thankfully acknowledges that her work was partially supported by FCT, I.P., the Portuguese national funding agency for science, research and technology, under the project UID/06522/2025.
