FiRe Seminar

This paper analyzes trading patterns and investor behavior in the market for tokenized financial assets. Even though investors can trade tokenized assets around the clock, trading activity is substantially higher when the primary listing exchange is open, in particular during the regular trading session. Likewise, price differences between the tokenized and underlying asset are wider during the extended trading hours than during the regular trading session. The majority of trades result from fractional order sizes, but orders still cluster at relatively round sizes, values, and prices. Additionally, a disproportionate number of trades, especially buy trades, use the minimum permissible order size, suggesting the presence of retail traders interested in owning an asset for purposes other than financial gain.