CoinDesk
HANetf has listed bitcoin ETCs designed to limit the effect of U.S. dollar movements on returns for sterling- and euro-based investors. The pound-hedged GBTC trades on the London Stock Exchange, while the euro-hedged EBTC is listed on Xetra and Euronext Paris. HSBC provides the currency hedges.
Why it matters
Bitcoin is generally priced in U.S. dollars, so European investors can face both bitcoin price movements and changes in the dollar against their home currency. The new products are aimed at long-term investors who want bitcoin exposure but are concerned about dollar weakness. They also provide exposure through exchange-traded products, without requiring investors to manage custody directly.
HANetf describes the listings as the first currency-hedged cryptocurrency ETCs. In the EU and U.K., ETCs provide exposure to a single commodity or commodity group, while ETFs must hold a diversified basket of assets.
Market impact
The launch adds a currency-hedged option to European crypto markets and extends a structure already used in gold: currency-hedged gold ETCs represent a $23 billion asset class, about 13% of Europe's gold ETC market. HANetf already offers gold products hedged against the euro, pound and Swiss franc.
The listings give investors a way to access bitcoin through familiar financial-market infrastructure while addressing one source of currency risk. They limit the effect of exchange-rate moves; they do not remove bitcoin's own price risk.
Frequently asked questions
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Which exchanges list HANetf’s pound- and euro-hedged bitcoin ETCs?
The pound-hedged GBTC trades on the London Stock Exchange. The euro-hedged EBTC is listed on Xetra and Euronext Paris.
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Who provides the currency hedges for HANetf’s bitcoin ETCs?
HSBC provides the currency hedges for the products.
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What currency risk are the new bitcoin ETCs designed to address?
They are designed to limit the effect of movements in the U.S. dollar against the pound or euro on investors’ returns.
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Do the currency hedges remove bitcoin price risk?
No. The products address currency movements, but investors remain exposed to changes in bitcoin’s price.
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How large is the European currency-hedged gold ETC market?
Currency-hedged gold ETCs represent a $23 billion asset class, about 13% of the gold ETC market in Europe.
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