Herding in Commodities and Cryptocurrencies

Summary

This episode explores herding behavior beyond equities, focusing on cryptocurrency markets during geopolitical shocks and commodity ETFs across different asset classes and time scales. Recent research shows strong, asymmetric herding in crypto—especially in bearish periods and when perceived geopolitical risk spikes—while commodity herding varies by sector, with energy ETFs showing persistent herding and agricultural ETFs only during extreme volatility. The findings highlight that herding is regime‑dependent, frequency‑specific, and asset‑class‑specific, offering practical insights for risk management and diversification strategies.