HANetf lists bitcoin ETCs hedged against the dollar in pounds and euros
In brief
- HANetf listed pound- and euro-hedged bitcoin ETCs, according to an emailed announcement reported by CoinDesk.
- GBTC, the GBP product, lists in London; EBTC, the euro version, lists on Xetra and Euronext Paris.
- HSBC is providing the currency hedging for both products, HANetf said.
- HANetf called them the world's first currency-hedged crypto ETCs.
What's listing, and where
HANetf's Arrow Bitcoin GBP Hedged ETC (GBTC) lists on the London Stock Exchange. Its euro counterpart (EBTC) lists on Xetra and Euronext Paris. (The London-listed GBTC ticker here belongs to HANetf's sterling product.)
Multinational bank HSBC is providing the currency hedging for both, per HANetf's announcement.
"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 its emailed announcement.
That "world's first" label is HANetf's own claim.
Why the dollar matters
Bitcoin, like gold, is almost universally priced in U.S. dollars. That means an investor in Europe who buys BTC is also taking on dollar exposure, whether they want it or not. HANetf said it's targeting investors who want long-term exposure to bitcoin but may be concerned about potential dollar weakness.
So why an ETC and not an ETF? Unlike in the U.S., ETFs in the EU and U.K. must hold a diversified basket of assets. ETCs exist to provide exposure to a single commodity or commodity group, which is the wrapper a single-asset bitcoin product needs.
The gold template
HANetf isn't starting from scratch. Currency-hedged gold ETCs are already a $23 billion asset class, roughly 13% of the gold ETC market in Europe, CoinDesk reported, and HANetf already offers gold products that hedge the euro, pound and Swiss franc.
Now it's bringing that structure to bitcoin.
Crypto exchange-traded products (ETPs, the umbrella term covering ETFs, ETCs and ETNs) have been a predominant way to get investors into digital assets without them having to self-custody. For Europeans who don't want a dollar position bundled into their bitcoin, there's now a hedged version of that route on London and continental exchanges.
Frequently asked questions
Why are European bitcoin products structured as ETCs instead of ETFs?
Unlike in the U.S., ETFs in the EU and U.K. must hold a diversified basket of assets. ETCs exist to provide exposure to a single commodity or commodity group, which suits a single-asset bitcoin product.
Why does a European investor take on dollar risk when buying bitcoin?
Bitcoin, like gold, is almost universally denominated in U.S. dollars. That means investors in markets like Europe also take on dollar exposure when they invest in BTC. HANetf's hedged ETCs are designed to offset pound and euro swings against the dollar.
Where do HANetf's currency-hedged bitcoin ETCs trade?
According to HANetf's announcement as reported by CoinDesk, the Arrow Bitcoin GBP Hedged ETC (GBTC) lists on the London Stock Exchange, while its euro counterpart (EBTC) lists on Xetra and Euronext Paris. HSBC is providing the currency hedging.
