London-based exchange-traded product provider HANetf has listed what it calls the world’s first currency-hedged crypto exchange-traded commodities (ETCs), giving pound and euro investors Bitcoin exposure with less dollar risk, CoinDesk reported.
HSBC provides currency hedging for products.
Bitcoin ETCs List Across Three Exchanges
Unlike in the U.S., ETFs in the European Union (EU) and U.K. should hold a diversified basket of assets. So, single-asset exposure comes through ETCs.
HANetf’s Arrow Bitcoin GBP Hedged ETC (GBTC) is listed on the London Stock Exchange. Its euro counterpart, the Arrow Bitcoin EUR Hedged ETC (EBTC), is listed on Frankfurt-based Xetra and Euronext Paris.
HANetf’s product page lists September 29 as EBTC’s Paris debut and September 30 for Xetra. Both products have a total expense ratio of 0.49%.
Why the Hedge Matters
For a euro-based investor, returns on an unhedged dollar-priced Bitcoin product reflect both Bitcoin’s dollar performance and changes in the euro-dollar exchange rate.
Currency hedging uses instruments, such as forwards or swaps, to offset exchange-rate movements.
“With this launch, we are bringing the established logic of euro-hedged ETFs to the crypto market,” said Hector McNeil, co-founder and co-CEO of HANetf. “Investors have long understood that currency movements can have a meaningful impact on returns on different asset classes, for example gold.”
The hedge aims to reduce currency effects on returns, not Bitcoin’s volatility. It may be imperfect, carries costs and can offset gains from a stronger dollar.
The listings extend a structure already used in precious metals. Currency-hedged gold ETCs hold about $23 billion, or roughly 13% of Europe’s gold ETC market, CoinDesk reported.
HANetf is targeting investors who want long-term exposure to Bitcoin and are concerned about dollar weakness.
The exchange-traded format also provides access without requiring investors to manage cryptocurrency wallets or private keys themselves.
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