Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/218737
Authors: 
Lammer, Dominique Marcel
Hanspal, Tobin
Hackethal, Andreas
Year of Publication: 
2020
Series/Report no.: 
SAFE Working Paper No. 277
Abstract: 
Cryptocurrencies have received growing attention from individuals, the media, and regulators. However, little is known about the investors whom these financial instruments attract. Using administrative data, we describe the investment behavior of individuals who invest in cryptocurrencies with structured retail products. We find that cryptocurrency investors are active traders, prone to investment biases, and hold risky portfolios. In line with attention effects and anticipatory utility, we find that the average cryptocurrency investor substantially increases log-in and trading activity after his or her first cryptocurrency purchase. Our results document which investors are more likely to adopt new financial products and help inform regulators about investors' vulnerability to cryptocurrency investments.
Subjects: 
Bitcoin
Cryptocurrencies
Structured retail products
Retail investors
Household finance
Investor behavior
JEL: 
G50
G40
D14
G11
G15
G02
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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