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

Christian Kreuzer, Ralf Laschinger, Christopher Priberny and Sven Benninghoff

Finance Research Letters, 2024, vol. 69, issue PB

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.

Keywords: Decentralized finance; Cryptocurrencies; Event study; Sentiment; GJR-GARCH regressions; Russian–Ukrainian crisis (search for similar items in EconPapers)
JEL-codes: F51 G14 G40 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012200

DOI: 10.1016/j.frl.2024.106191

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