HANetf Debuts Euro-Hedged Bitcoin Fund in Europe

A new euro-hedged Bitcoin fund has been launched by HANetf in Europe. This is considered a world first, as it gives European investors exposure to Bitcoin while reducing the impact of movements between the euro and the US dollar.

The Arrow Bitcoin EUR Hedged ETF aims to remove the currency risk associated with investing in Bitcoin for European investors, who would otherwise be exposed to both the price of Bitcoin and the value of the dollar against the euro.

HANetf's co-founder and co-CEO, Hector McNeil, stated that 'investors have long understood that currency movements can have a meaningful impact on returns on different asset classes', such as gold. He noted that similar to gold, Bitcoin is priced in US dollars, which means European investors take two views at once.

The fund will use HSBC's currency hedging services to mitigate the risk of currency fluctuations. This works by entering forward contracts to sell the equivalent dollar amount for euros at a fixed rate on a future date. If the dollar weakens against the euro, the loss on the Bitcoin's euro value is offset by a gain on the forward.