Hedging the downside risk of commodities through cryptocurrencies

Muhammad Abubakr Naeem, Saqib Farid, Faruk Balli, Syed Jawad Hussain Shahzad

Research output: Contribution to journalArticlepeer-review

40 Citations (Scopus)


Today, commodities are exposed to ever-increasing price volatilities due to extreme market uncertainties linked with financialization. The paper addresses a timely question of whether cryptocurrencies are hedge and safe-haven for commodities. We focus on this literature gap by using individual commodities from four groups, including metal, agriculture, precious metal, and energy. Further, we also consider four major cryptocurrencies, namely, Bitcoin, Ethereum, Litecoin, and Ripple for our analysis. Our findings show the functional role of cryptocurrencies as hedge and safe-haven for individual commodities. Moreover, the underlying properties are persistent during the crisis period.

Original languageEnglish
Pages (from-to)153-160
Number of pages8
JournalApplied Economics Letters
Issue number2
Publication statusPublished - 2021
Externally publishedYes


  • commodities
  • Cryptocurrencies
  • hedge
  • safe-haven

ASJC Scopus subject areas

  • Economics and Econometrics


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