Covid-19 impact on NFTs and major asset classes interrelations: Insights from the wavelet coherence analysis

Author First name, Last name, Institution

Zaghum Umar, University of Econ Ho Chi Minh CityFollow
Mariya Gubareva, SOCIUS CSG Res Social Sci & Management
Tamara Teplova, HSE University
Dang K. Tran, University of Econ Ho Chi Minh City

Document Type

Article

Source of Publication

Finance Research Letters

Publication Date

6-1-2022

Abstract

Non-fungible tokens (NFTs) revolutionize crypto-landscape, becoming popular among investors and general public. This first-ever study of coherence between returns of NFTs and major assets employs the wavelet approach. The pairwise returns coherence between the considered markets grows throughout the Covid-19. Before the pandemic, NFTs lag behind stocks (2017) and bitcoin (2018), while lead gold (2018). We reveal that the returns coherence between NFTs and other assets is high/low for the two-week-plus/below-to-weeks investment horizons. We refine Aharon and Demir ' s (2021) findings stating that NFTs absorbed risk during Covid-19 by demonstrating that this conclusion holds only in the short-run for below-two-weeks horizons.

DOI Link

10.1016/j.frl.2022.102725

ISSN

1544-6123

Publisher

Elsevier BV

Volume

47

Disciplines

Business

Keywords

Return connectedness, Covid-19, Non-Fungible Tokens, Spillover

Recommended Citation

Umar, Zaghum; Gubareva, Mariya; Teplova, Tamara; and Tran, Dang K., "Covid-19 impact on NFTs and major asset classes interrelations: Insights from the wavelet coherence analysis" (2022). All Works. 5215.
https://zuscholars.zu.ac.ae/works/5215

Indexed in Scopus

no

Open Access

yes

Open Access Type

Bronze: This publication is openly available on the publisher’s website but without an open license