European Investors Can Now Purchase Bitcoin Without U.S. Dollar Exposure

European investors can now acquire bitcoin without the concern of U.S. dollar exchange rate fluctuations negatively impacting their investments.

HANetf, a London-based asset management platform, has introduced exchange-traded commodities (ETCs) that offer bitcoin exposure while protecting against variations in the pound sterling and euro relative to the U.S. dollar, according to an announcement made by HANetf on Wednesday.

The multinational banking institution HSBC is responsible for providing the necessary currency hedges for these products.

HANetf stated, "These are the world’s first currency-hedged crypto ETCs, introducing a new hedging structure to the European crypto ETC market." This innovation caters specifically to investors who seek long-term bitcoin exposure but are wary of potential dollar depreciation.

In contrast to the U.S., where ETFs must hold a diverse asset mix, European Union (EU) and U.K. regulations stipulate that ETCs provide exposure to a single commodity or a group of commodities. HANetf’s Arrow Bitcoin GBP Hedged ETC (GBTC) is available on the London Stock Exchange, while its euro-hedged counterpart (EBTC) is listed on Xetra in Frankfurt and Euronext Paris.

Bitcoin, similar to gold, is primarily priced in U.S. dollars, which means that investors in regions like Europe inadvertently take on dollar exposure when investing in BTC. HANetf aims to attract those who prefer to invest in bitcoin without the added risk associated with dollar fluctuations.

Currently, currency-hedged gold ETCs represent a significant segment of the market, valued at approximately $23 billion, which accounts for about 13% of the gold ETC market in Europe. HANetf has previously launched products that hedge against the euro, pound, and Swiss franc.

Cryptocurrency exchange-traded products (ETPs)—a category that includes ETFs, ETCs, and exchange-traded notes (ETNs)—are becoming a favored means for investors to engage with digital assets, allowing them to gain exposure to cryptocurrencies without the hassle of directly managing asset custody. Traditional finance (TradFi) investors may demand products that mimic their conventional financial experiences, and HANetf’s GBTC and EBTC are the latest offerings to meet this demand.