HANetf launches euro-hedged Bitcoin ETC EBTC

HANetf has launched Arrow Bitcoin EUR Hedged ETC (ticker: EBTC), a euro-hedged exchange traded commodity for bitcoin aimed at European investors. HSBC will execute the currency-hedging arrangements and the product carries a total expense ratio of 0.49%.

Bitcoin is priced and traded in US dollars. For investors holding euro-denominated products, movements in the EUR/USD rate can change local-currency returns separately from changes in bitcoin’s dollar price. The EBTC hedging structure is intended to reduce the effect of those exchange-rate movements on euro returns.

HANetf describes EBTC as the world’s first euro-hedged crypto ETC and said the product brings a currency-hedged structure to the European crypto ETC market. The firm cited roughly $12 billion of crypto-tracking ETC assets in Europe and about $100 billion in the United States. It also referenced roughly $300 billion of assets under management in European currency-hedged ETFs and ETCs across asset classes.

The issuer noted that currency-hedged gold ETCs total about $23 billion of European gold ETC assets, or roughly 13% of that market, and pointed to its prior listings of euro, Swiss franc and sterling-hedged versions of The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU).

HANetf pointed to earlier crypto ETP work, including partnering on the June 2020 launch of the Bitwise Physical Bitcoin ETP (BTCE) and the introduction of Europe’s first leveraged and short cryptocurrency ETPs last year.

Hector McNeil, co-founder and co-CEO of HANetf, said: “We are bringing the established logic of Euro-hedged ETFs to the crypto market. Many investors may want exposure to bitcoin without taking an additional view on the US dollar.”

The firm said EBTC may suit investors seeking long-term bitcoin exposure who prefer returns to be less affected by potential dollar weakness against the euro. The hedging arrangement separates currency exposure from the underlying bitcoin exposure, allowing euro-based investors to track bitcoin price moves in dollar terms with reduced foreign-exchange impact on local-currency returns.