Cryptocurrencies as a vehicle for capital exodus: Evidence from the Russian–Ukrainian crisis

Cryptocurrencies provide an escape from the conventional financial system and its regulations and could therefore become increasingly popular in the midst of geopolitical uncertainties. We analyze the linkage of the Russia–Ukraine conflict and the trading volume of 16 major cryptocurrencies via event study methodologies, based on a geopolitical risk index. The results show that the trading volume of most cryptocurrencies is positively affected by the events of the conflict. This is especially true for payment tokens and most utility coins. Interestingly, stablecoins show only fewer trading volumes before the actual event. Among utility tokens, Ripple in particular is positively influenced. • We examine how the Russia–Ukraine conflict affects the trading volume of 16 major cryptocurrencies. • Most cryptocurrencies see temporary increased trading volumes on events of the conflict. • Payment tokens and many utility coins, in particular, experience higher trading volumes. • Stablecoins only have lower trading volumes before the event.