European investors can now invest in bitcoin through currency-hedged products, minimizing U.S. dollar exposure.
European investors can now invest in bitcoin without worrying about the risks associated with U.S. dollar fluctuations.
London's HANetf has launched exchange-traded commodities (ETCs) that provide bitcoin exposure while shielding investors from currency volatility in euros and pounds, a move announced on Wednesday.
HSBC plays a crucial role by offering the necessary currency hedges for these financial products.
HANetf claims these are the first currency-hedged crypto ETCs globally, designed to appeal to long-term investors hesitant about potential dollar depreciation.
Unlike the U.S. market, where exchange-traded funds (ETFs) require a diverse asset base, European regulations permit ETCs to focus solely on a single commodity or a specific group. The Arrow Bitcoin GBP Hedged ETC (GBTC) is available on the London Stock Exchange, while its euro-hedged version (EBTC) is listed on Xetra and Euronext Paris.
As bitcoin is generally valued in U.S. dollars, European investors often face inadvertent dollar exposure. HANetf's products seek to eliminate this risk for those looking to invest in bitcoin.
The market for currency-hedged gold ETCs currently stands at around $23 billion, making up approximately 13% of the total gold ETC market in Europe. HANetf has previously introduced hedging solutions against several currencies, including the euro and Swiss franc.
Exchange-traded products (ETPs) such as ETFs and ETCs are increasingly popular among investors, as they offer exposure to digital assets without the complexities of direct custody. HANetf’s new offerings, GBTC and EBTC, cater to traditional finance investors looking for familiar investment experiences.
