Abstract:

Global financial investors have prominently relied on conventional investment avenues. During COVID-19, the financial industry saw the shift to newer ones like cryptocurrencies and Non-Fungible Tokens (NFTs). This study illuminates dynamic connectedness among two prominent and contemporary asset classes; digital assets (Cryptocurrencies and NFTs) and energy market (Dirty energy and Clean energy), as this relationship has received very little scholarly attention. We consider daily returns of two representatives of each market collecting data from December 31, 2019 to January 21, 2026. For empirical analysis, quantile connectedness (QVAR) is employed that indicates normal and extreme market conditions. Results demonstrate increased connectedness during periods of turmoil. Oil and gas remain constant as net receivers; and decentraland and theta constantly emerge as net transmitters. Interestingly, clean energy indices remain net receivers during normal market conditions but switched to net transmitters during extreme situations, signalling a good diversifying potential. Cryptocurrencies tend to be net receivers at median and upper quantile but shift to being net transmitters at lower quantile. The results signify an increasing technology and sustainability-driven economic shift. This study thus, holds important implications for investors, regulators, policymakers, and corporates. The study extends the existing literature by filling the existing research gap. It offers insights for investors and corporates to focus more on technology and clean energy markets while advising policymakers and regulators to roll out policies and regulations that streamline and regulate these emerging sectors.

Please choose your submission type: Full Paper

Primary Track: Financial Management

Keywords: Alternative Investors and the Firm ;Behavioral Finance ;Environmental Finance ;Financial Decision Making ;Financial Literacy ;Financial Technology (FinTech) ;Impact Investors ;Responsible Investors and the Firm ;Risk Management

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Ms. YUKTA ANAND