Daily News 19

Tag: HANetf

  • How European Investors Can Now Buy Bitcoin Without U.S. Dollar Exposure

    How European Investors Can Now Buy Bitcoin Without U.S. Dollar Exposure

    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.

  • HANetf Launches World’s First Euro-Hedged Bitcoin Fund

    HANetf Launches World’s First Euro-Hedged Bitcoin Fund

    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.