Asset Pricing in Digital Assets

Digital assets are continually evolving into a “mainstream” asset class. Institutional interest is growing every day, with the market capitalization of digital assets rising in value and importance not only for retail investors, but also for global banks, hedge funds and regulators. This chapter provides an overview for interested readers of how digital assets compare to traditional asset classes, how a blockchain works, and an assessment of whether academic research has uncovered first trading strategies and other relevant findings in this emergent asset class of virtual tokens.