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Cryptocurrencies as a vehicle for capital exodus: Evidence from the Russian–Ukrainian crisis

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  • Kreuzer, Christian
  • Laschinger, Ralf
  • Priberny, Christopher
  • Benninghoff, Sven

Abstract

Cryptocurrencies provide an escape from the conventional financial system and its regulations and could therefore become increasingly popular in the midst of geopolitical uncertainties. We analyze the linkage of the Russia–Ukraine conflict and the trading volume of 16 major cryptocurrencies via event study methodologies, based on a geopolitical risk index. The results show that the trading volume of most cryptocurrencies is positively affected by the events of the conflict. This is especially true for payment tokens and most utility coins. Interestingly, stablecoins show only fewer trading volumes before the actual event. Among utility tokens, Ripple in particular is positively influenced.

Suggested Citation

  • Kreuzer, Christian & Laschinger, Ralf & Priberny, Christopher & Benninghoff, Sven, 2024. "Cryptocurrencies as a vehicle for capital exodus: Evidence from the Russian–Ukrainian crisis," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012200
    DOI: 10.1016/j.frl.2024.106191
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    More about this item

    Keywords

    Decentralized finance; Cryptocurrencies; Event study; Sentiment; GJR-GARCH regressions; Russian–Ukrainian crisis;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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