Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies
Abstract The environmental concerns associated with energy-intensive cryptocurrencies have led to the rise of clean cryptocurrencies, which aim to balance financial innovation and sustainability. This study investigates whether clean cryptocurrencies improve portfolio resilience while promoting envi...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-06-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-04910-z |
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| _version_ | 1850114511348957184 |
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| author | Wei Kuang |
| author_facet | Wei Kuang |
| author_sort | Wei Kuang |
| collection | DOAJ |
| description | Abstract The environmental concerns associated with energy-intensive cryptocurrencies have led to the rise of clean cryptocurrencies, which aim to balance financial innovation and sustainability. This study investigates whether clean cryptocurrencies improve portfolio resilience while promoting environmental goals in the cryptocurrency market. Using dynamic correlation-based hedge and safe-haven regression models, relative risk ratio analysis with higher-order moments risks, and multiple portfolio optimization strategies, we assess the impact of integrating clean cryptocurrencies into portfolios composed mainly of traditional cryptocurrencies. The results show that clean cryptocurrencies consistently reduce tail risk during periods of market stress; however, this risk reduction does not always result in higher returns or better risk-adjusted performance. These findings have important implications for both investors and policymakers. Clean cryptocurrencies can help investors manage tail risk and align with ESG goals, but their implementation requires a careful assessment of return expectations and investment constraints. Policymakers are encouraged to create a regulatory framework that fosters sustainable digital asset development while protecting investors and ensuring market stability. This study contributes to a deeper understanding of clean cryptocurrencies’ role in sustainable investment strategies within the evolving digital asset landscape. |
| format | Article |
| id | doaj-art-bf18b66c9b7a4ae396b125f672cbce31 |
| institution | OA Journals |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-bf18b66c9b7a4ae396b125f672cbce312025-08-20T02:36:50ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-06-0112112310.1057/s41599-025-04910-zGreening crypto portfolios: the diversification and safe haven potential of clean cryptocurrenciesWei Kuang0School of Sport Business, Guangzhou Sport UniversityAbstract The environmental concerns associated with energy-intensive cryptocurrencies have led to the rise of clean cryptocurrencies, which aim to balance financial innovation and sustainability. This study investigates whether clean cryptocurrencies improve portfolio resilience while promoting environmental goals in the cryptocurrency market. Using dynamic correlation-based hedge and safe-haven regression models, relative risk ratio analysis with higher-order moments risks, and multiple portfolio optimization strategies, we assess the impact of integrating clean cryptocurrencies into portfolios composed mainly of traditional cryptocurrencies. The results show that clean cryptocurrencies consistently reduce tail risk during periods of market stress; however, this risk reduction does not always result in higher returns or better risk-adjusted performance. These findings have important implications for both investors and policymakers. Clean cryptocurrencies can help investors manage tail risk and align with ESG goals, but their implementation requires a careful assessment of return expectations and investment constraints. Policymakers are encouraged to create a regulatory framework that fosters sustainable digital asset development while protecting investors and ensuring market stability. This study contributes to a deeper understanding of clean cryptocurrencies’ role in sustainable investment strategies within the evolving digital asset landscape.https://doi.org/10.1057/s41599-025-04910-z |
| spellingShingle | Wei Kuang Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies Humanities & Social Sciences Communications |
| title | Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies |
| title_full | Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies |
| title_fullStr | Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies |
| title_full_unstemmed | Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies |
| title_short | Greening crypto portfolios: the diversification and safe haven potential of clean cryptocurrencies |
| title_sort | greening crypto portfolios the diversification and safe haven potential of clean cryptocurrencies |
| url | https://doi.org/10.1057/s41599-025-04910-z |
| work_keys_str_mv | AT weikuang greeningcryptoportfoliosthediversificationandsafehavenpotentialofcleancryptocurrencies |