HANetf Launches Euro-Hedged Bitcoin ETC

European investors can now reduce their Bitcoin exposure to the euro-dollar exchange rate thanks to the new Arrow Bitcoin EUR Hedged ETC (EBTC) launched by HANetf. This product allows investors to hedge against currency movements, not volatility in Bitcoin's price.

The EBTC is designed for euro-listed investors who want to minimize their dollar exposure when investing in Bitcoin. Since Bitcoin is commonly priced and benchmarked in US dollars, a euro investor may receive an unhedged return that includes both the Bitcoin's price movement in dollars and the change in the dollar's value relative to the euro.

A hedged investment can reduce this currency effect, resulting in a more stable return. The product is designed to track the performance of Bitcoin while minimizing the impact of EUR/USD movements. This means that if the dollar appreciates against the euro, an unhedged investor may receive an extra euro return, but a hedged investor will not benefit from this.