The Alpha Framework: An Analysis of the “Coinbase Effect”

Avi Felman
Mar 1 · 8 min read
Lions = pure alpha
From the Ledger Capital pitch deck. The old days.

The Alpha Framework

It’s interesting that the crypto space seems to need this, but here we are. Before we dive in a quick review of what alpha is, courtesy of Investopedia:

Some Background:

There are technically two types of listing, one for Coinbase and one for Coinbase Pro. Whether an asset is listed on one or the other is not likely to have a material affect on the alpha for the announcement, and therefore I will be referring to either as a listing on “Coinbase”.

  1. An announcement that an asset will be added in the future to Coinbase
  2. An announcement that the asset has started trading on Coinbase

The Analysis:

First, let’s take a look at a table of all assets ever listed on Coinbase and see if we can find anything interesting.

Source: Wave Financial Calculations
Source: Wave Financial Calculations. To calculate ETH excess returns I only used BTC returns during that time frame.
Source: Wave Financial Calculations

Wave Financial

Wave Financial offers early-stage investment, asset management, and treasury management to further the growth of the digital asset ecosystem

Avi Felman

Written by

WashU ’17. Crypto enthusiast. Builder of three multi dollar companies @BearStudios, @VentureFocus, @LedgerCapital. Telegram @delta_neutral

Wave Financial

Wave Financial offers early-stage investment, asset management, and treasury management to further the growth of the digital asset ecosystem