HANetf Unveils Euro-Hedged Bitcoin ETC in Europe

HANetf has launched what it claims is the world's first euro-hedged Bitcoin exchange-traded commodity (ETC) in Europe. The Arrow Bitcoin EUR Hedged ETC, trading under the ticker EBTC on both Euronext Paris and Xetra, began trading on September 29 and 30, respectively.

The product is designed to isolate the Bitcoin trade by rolling forward FX hedges daily through HSBC, neutralizing the EUR/USD swing. This means that returns will track Bitcoin's dollar price as closely as possible, translated into euros without exchange rate distortion.

The euro-hedged gold ETC market has been around for years, accumulating approximately $23 billion in European assets. In contrast, European crypto ETCs total around $12 billion in assets. The lack of euro-hedging options in the crypto space is a gap that institutional investors are increasingly highlighting as they become more comfortable with digital assets.

The 49 basis point expense ratio positions EBTC competitively within the European crypto ETP landscape, although adding the daily FX hedge cost means the all-in expense will be slightly higher. However, for investors who would otherwise need to run their own currency overlay, the bundled solution likely comes out cheaper and operationally simpler.