HANetf Debuts Euro-Hedged Bitcoin Fund to Mitigate Currency Risk

HANetf, an $9.2 billion ETF provider, has launched the first euro-hedged Bitcoin exchange-traded fund in Europe.

The Arrow Bitcoin EUR Hedged ETF aims to reduce the impact of movements between the euro and US dollar on European investors' exposure to bitcoin.

Bitcoin is priced in dollars, meaning investors who buy an unhedged product are exposed to two things at once: the bitcoin price and the dollar's moves against the euro.

The new fund uses currency hedging provided by HSBC to offset losses on the euro value of bitcoin if the dollar weakens against the euro, and vice versa.