Even Robots Are Joining the Bitcoin Craze as Quants Seek an Edge
- Researchers say momentum, carry, value factors work in tokens
- Systematic trend-followers begin to invest in cryptocurrencies
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Quant blended with cryptocurrency sounds like a cocktail poured in hell. But behind closed doors, a few intrepid souls in the investing world are starting to drink it.
Part academic exercise, part arranged marriage of Wall Street fads, a handful of theorists and traders are looking at what investment factors like momentum and value can tell you about -- yep -- the price of bitcoin. Factors, the wiring behind smart beta exchange-traded funds, already revolutionized equities, proving that groups of stocks with traits like cheapness and low volatility return more than the market as a whole.