European investors can now access bitcoin exposure without bearing exchange-rate risk, thanks to new exchange-traded commodities (ETCs) launched by London-based asset management platform HANetf.
HANetf has listed currency-hedged bitcoin ETCs across multiple European exchanges. The pound-hedged product, Arrow Bitcoin GBP Hedged ETC (GBTC), trades on the London Stock Exchange. The euro-hedged equivalent (EBTC) trades on Xetra in Frankfurt and Euronext Paris. Multinational bank HSBC provides the currency hedging for both products.
HANetf describes these as the world's first currency-hedged cryptocurrency ETCs. The products address a fundamental challenge for European investors: bitcoin is almost universally denominated in U.S. dollars, meaning non-dollar investors automatically assume currency exposure when buying the asset. This same dynamic applies to gold and other dollar-denominated commodities.
The ETCs are designed for long-term investors seeking bitcoin exposure while minimizing the impact of potential dollar weakness. They allow investors to gain cryptocurrency exposure through a regulated trading vehicle without managing custody directly.
Currency-hedged investment products are already an established category in Europe. Currency-hedged gold ETCs represent approximately $23 billion in assets, or about 13% of the European gold ETC market. HANetf currently provides gold ETCs hedged in euros, pounds, and Swiss francs.
In the European Union and United Kingdom, regulatory requirements mandate that ETFs hold diversified asset baskets. ETCs exist to provide exposure to single commodities or commodity groups, making them the appropriate vehicle for concentrated cryptocurrency exposure in these markets.
