The evolution of the relationship between cryptocurrencies and stocks: an empirical analysis of the influence of Bitcoin and Ethereum on Euronext

Purpose: This work analyzes whether cryptocurrencies significantly influence Euronext stock returns. Design/methodology/approach: To this end, this quantitative research analyzes companies from 4 Euronext financial markets between 2017 and 2022 using the panel data methodology. The Generalized Method of Moments (GMM) methodology was also used to make the analysis more robust. Findings: This study concluded that Bitcoin and Ethereum positively and statistically significantly influence Euronext stock returns. Their notoriety caused them to lose the safe haven characteristics they displayed in a more embryonic phase and led them to be influenced by the same systemic factors that affect the stock market. Originality/value: The results of this study are immensely important for private and institutional investors investing in Euronext stocks and looking to diversify their portfolios. Keywords: Stock Returns; Euronext; Bitcoin; Ethereum; Cryptocurrencies DOI: https://doi.org/10.58869/EJABM11(1)/06