Spillovers between Bitcoin and Meme stocks

Shi Li

Finance Research Letters, 2022, vol. 50, issue C

Abstract: This paper examines the spillover effect between Bitcoin and Meme stocks, the two types of assets heavily traded by retail investors. A unidirectional wealth transfer phenomenon from Meme stocks to Bitcoin is identified. Moreover, both past own volatility and volatility from Bitcoin contribute to Meme stocks’ current volatility. “Bad” news on the two assets affects not only themselves but also spillovers to each other. Our findings demonstrate the great risk of investment in Meme stocks and call for comprehensive protection for retail investors amid their growing active involvement in financial markets.

Keywords: Bitcoin; Meme stocks; Retail investors; Spillovers; Multivariate GARCH (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322004238
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004238

DOI: 10.1016/j.frl.2022.103218

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().