Pusan Study Finds 7 Green Cryptocurrencies Transmit Volatility to ESG Assets
Updated
Updated · PR Newswire · Jul 24
Pusan Study Finds 7 Green Cryptocurrencies Transmit Volatility to ESG Assets
3 articles · Updated · PR Newswire · Jul 24
Summary
A Pusan National University study of seven green cryptocurrencies and three green financial benchmarks found green crypto shocks can spill into ESG funds, green bonds and clean-energy indexes, undermining their role as portfolio hedges.
Daily data from November 2017 to July 2024 showed a U-shaped pattern: market connectedness was moderate in normal periods but jumped in both downturns and rallies, when diversification benefits weakened and contagion risk rose.
Cardano and Stellar emerged as the strongest volatility transmitters, while green bonds, clean-energy indices and ESG investments were net receivers that absorbed disturbances from elsewhere in the system.
COVID-19 and later geopolitical disruptions intensified those linkages, and the authors said investors may need more dynamic risk management while regulators consider monitoring and disclosure tools for green digital assets.