Crypto
HANetf Debuts Euro-Hedged Bitcoin Fund in World First Move
HANetf has launched a new euro-hedged bitcoin fund in Europe, allowing investors to gain exposure to bitcoin while reducing their currency risk.
The Arrow Bitcoin EUR Hedged ETF is the first of its kind and aims to remove the impact of movements between the euro and US dollar on European investors' returns.
Bitcoin is priced in US dollars, meaning that European investors who buy an unhedged product are exposed to two things at once: the bitcoin price and the dollar's moves against the euro.
HANetf has partnered with HSBC to provide currency hedging for the product. The bank will enter forward contracts to sell the equivalent dollar amount for euros at a fixed rate on a future date, offsetting any losses or gains on the bitcoin's euro value.