How European investors can now buy bitcoin without taking on U.S. dollar risk
Asset manager HANetf has launched new exchange-traded commodities (ETCs) in Europe that allow investors to gain bitcoin exposure while hedging against U.S. dollar fluctuations. The products, supported by HSBC, aim to provide a traditional financial vehicle for crypto investment without currency risk.
Why it matters
These products bridge the gap between traditional finance and digital assets, offering European investors a way to mitigate the dollar-denominated volatility inherent in bitcoin.
London-based asset management platform HANetf has listed exchange-traded commodities (ETCs) that provide exposure to bitcoin while hedging swings in the pound sterling and euro against the U.S. dollar, HANetf said in an emailed announcement on Wednesday.
Multinational bank HSBC is providing the currency hedging for the products.
“These are the the world’s first currency-hedged crypto ETCs, bringing a new currency hedged structure to the European crypto ETC market,” HANetf said in Wednesday’s announcement.
Unlike in the U.S., ETFs in the European Union (EU) and U.K. must hold a diversified basket of assets. ETCs, therefore, exist to provide exposure to a single commodity or commodity group.
HANetf’s Arrow Bitcoin GBP Hedged ETC (GBTC) lists on the London Stock Exchange while its euro counterpart (EBTC) lists on Frankfurt-based Xetra and Euronext Paris.
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