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How European investors can now buy bitcoin without taking on U.S. dollar risk
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European investors can now gain bitcoin exposure with exchange-rate hedges against the pound sterling or euro, London-based HANetf said on Wednesday. HSBC is providing the hedges for the new exchange-traded commodities. Designed for long-term investors, the products seek to limit how U.S. dollar movements affect local returns without requiring direct bitcoin custody.
Bitcoin is almost universally denominated in U.S. dollars, meaning European buyers otherwise take on dollar exposure as well as cryptocurrency risk. Currency swings can raise or reduce sterling- and euro-denominated returns independently of bitcoinâs performance. HANetf said it designed the products for investors concerned about potential dollar weakness.
HANetfâs Arrow Bitcoin GBP Hedged ETC, or GBTC, trades on the London Stock Exchange. The euro-hedged EBTC is listed on Frankfurt-based Xetra and Euronext Paris. In the EU and U.K., ETFs must hold diversified baskets, so ETCs provide a route to single-commodity exposure.
HANetf called GBTC and EBTC the worldâs first currency-hedged cryptocurrency ETCs. Their debut adds a new hedged structure to Europeâs crypto ETC market and broadens listed access to digital assets. The approach also has precedent in gold: currency-hedged gold ETCs form a $23 billion asset class.
Those hedged gold products account for approximately 13% of Europeâs gold ETC market, and HANetf already offers versions hedging the euro, pound and Swiss franc. Exchange-traded products have become a predominant way to obtain crypto exposure without managing custody. Their exchange listings may also appeal to investors familiar with traditional financial products.
The GBTC and EBTC are intended for investors seeking long-term bitcoin exposure while limiting currency effects, though they remain exposed to bitcoin price risk. Their listings across London, Frankfurt and Paris make the hedged structure available in three European trading venues. HANetfâs existing gold range suggests a broader industry push toward separating commodity performance from currency exposure.
