Key Highlights
- HANetf has listed bitcoin exchange-traded commodities with hedges against pound sterling and euro movements versus the U.S. dollar.
- HSBC is providing the currency hedging for the products.
- GBTC trades on the London Stock Exchange, while EBTC trades on Xetra and Euronext Paris.
HANetf Lists Currency-Hedged Bitcoin ETCs in Europe
European investors can now gain exposure to bitcoin without taking on the full impact of exchange-rate movements that could reduce returns. London-based asset management platform HANetf has listed exchange-traded commodities (ETCs) designed to track bitcoin exposure while hedging fluctuations in pound sterling and the euro against the U.S. dollar.
Multinational bank HSBC is providing the currency hedging for the products, according to an emailed announcement from HANetf on Wednesday. The structure is intended for investors in European markets, where bitcoin exposure generally also involves exposure to the U.S. dollar because the cryptocurrency is almost universally denominated in dollars.
“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.
Bitcoin Products Listed on London, Frankfurt and Paris Exchanges
HANetf’s Arrow Bitcoin GBP Hedged $ETC, trading under the ticker GBTC, is listed on the London Stock Exchange. Its euro-hedged counterpart, EBTC, is listed on Frankfurt-based Xetra and Euronext Paris.
The products are structured as ETCs rather than exchange-traded funds. Unlike in the United States, ETFs in the European Union and the United Kingdom must hold a diversified basket of assets. ETCs can therefore provide exposure to a single commodity or a group of commodities, making the format suitable for a bitcoin-linked product focused on one underlying asset.
How Currency Hedging Affects European Bitcoin Exposure
Bitcoin’s dollar denomination creates an additional consideration for investors based in Europe and other non-dollar markets. Changes in the value of the pound sterling or euro against the U.S. dollar can affect the value of a dollar-denominated bitcoin investment, independently of movements in bitcoin itself.
HANetf’s GBTC and EBTC products are designed to address that currency exposure by hedging movements between the relevant European currency and the U.S. dollar. The pound sterling hedge applies to GBTC, while the euro hedge applies to EBTC.
Why This Matters
The listings give European investors a way to access bitcoin through exchange-traded products while targeting reduced exposure to currency swings against the U.S. dollar. The launch also reflects the use of the ETC structure in European markets, where regulatory requirements distinguish these products from diversified ETFs.
The products’ performance remains linked to bitcoin exposure, while the currency hedge is intended to address the exchange-rate risk created by bitcoin’s dollar denomination. HSBC’s role is limited in the reported announcement to providing the currency hedging for the two products.
Frequently Asked Questions
What are HANetf’s new bitcoin products?
They are currency-hedged bitcoin exchange-traded commodities: the Arrow Bitcoin GBP Hedged $ETC, or GBTC, and its euro counterpart, EBTC.
Where are GBTC and EBTC listed?
GBTC is listed on the London Stock Exchange. EBTC is listed on Xetra and Euronext Paris.
Why are the products currency-hedged?
Bitcoin is almost universally denominated in U.S. dollars, so investors using pounds or euros can also face dollar exposure. The products are designed to hedge movements in pound sterling and the euro against the U.S. dollar.