Key Highlights:
- HANetf has launched what it describes as the world’s first euro-hedged Bitcoin exchange-traded commodity.
- HSBC will provide the currency hedging, designed to reduce the impact of fluctuations between the euro and US dollar.
- The launch follows strong demand for US Bitcoin exchange-traded funds, which collectively manage $111.1 billion in assets, according to Coinglass.
HANetf launches euro-hedged Bitcoin exchange-traded commodity
HANetf, a $9.2 billion exchange-traded fund provider, has launched a euro-hedged Bitcoin exchange-traded commodity (ETC), a product it describes as the first of its kind in the world. The new fund is designed to give investors exposure to Bitcoin while reducing the effect of movements in the US dollar against the euro.
Bitcoin is priced in US dollars, meaning European investors can be exposed to both Bitcoin’s performance and changes in the value of the dollar. The euro hedge is intended to separate those two factors, allowing investors to focus more directly on Bitcoin’s price movements in euro terms.
“With this launch, we are bringing the established logic of euro-hedged ETFs to the crypto market,” Hector McNeil, co-founder and co-CEO of HANetf, said in a statement. “Investors have long understood that currency movements can have a meaningful impact on returns on different asset classes, for example gold.”
“Similar to gold, bitcoin is priced in US dollars, meaning European investors can end up taking two views at once: a view on bitcoin itself and a view on the dollar.
How the Bitcoin currency hedge works
HSBC will provide the currency hedging for HANetf’s product. In a typical euro-hedged fund, a bank enters forward contracts to sell an equivalent dollar amount for euros at a fixed exchange rate on a future date.
If the dollar weakens against the euro, the decline in Bitcoin’s euro value is offset by a gain on the currency forward. If the dollar strengthens, the opposite effect occurs. The contracts are generally rolled over each month, with the hedge resized during the rollover process.
Bitcoin ETFs continue to attract major assets
The launch comes after the US Securities and Exchange Commission approved spot Bitcoin ETFs in 2024. Products managed by firms including BlackRock, Fidelity and Morgan Stanley allow investors to buy shares that track Bitcoin’s price without directly holding or storing the cryptocurrency.
Those US Bitcoin ETFs have attracted significant investor demand. According to Coinglass, the funds collectively manage $111.1 billion in assets, following what was described as the most successful launch in ETF history.
Why This Matters
HANetf’s euro-hedged Bitcoin ETC addresses a specific issue for European investors: the additional currency risk created because Bitcoin is denominated in US dollars. By using a monthly currency-hedging process supplied by HSBC, the product is structured to limit the impact of euro-dollar exchange-rate movements on Bitcoin returns.
The launch also reflects the expansion of regulated exchange-traded crypto products beyond the US market. While the product retains exposure to Bitcoin, its euro-hedged structure gives investors a way to seek that exposure without taking the same level of direct view on the US dollar.
Frequently Asked Questions
What has HANetf launched?
HANetf has launched a euro-hedged Bitcoin exchange-traded commodity, which it describes as the world’s first product of its kind.
How does the euro hedge work?
HSBC uses currency forward contracts to offset changes in the value of the US dollar against the euro. The contracts are typically rolled monthly and resized when they roll.
How much do US Bitcoin ETFs manage?
US Bitcoin ETFs collectively manage $111.1 billion in assets, according to Coinglass.