LONDON, Sept. 30 (CandyPulse) — European investors now have a way to own bitcoin without also taking a bet on the U.S. dollar. HANetf has launched the Arrow Bitcoin EUR Hedged ETC, ticker EBTC, billed as the world's first euro-hedged bitcoin exchange-traded commodity.
Key takeaways
Bitcoin is priced in U.S. dollars. So when a European investor buys it, their return depends on two things: bitcoin's price and the euro-dollar exchange rate. If bitcoin rises 10% but the dollar falls 10% against the euro, a European investor can end up with roughly nothing.
EBTC is designed to strip out most of that currency effect. It uses hedging from HSBC to reduce exposure to dollar swings, so returns track bitcoin's performance more closely in euro terms.
| Detail | Figure |
|---|---|
| Ticker | EBTC |
| Exchanges | Euronext Paris, Xetra |
| Total expense ratio | 0.49% |
| Hedging provider | HSBC |
| Replication | Physical |
| Domicile | Jersey |
The product holds real bitcoin (physical replication), with Interactive Brokers acting as custodian.
Currency-hedged share classes are common for stocks and bonds, but crypto has lagged behind. As Europe's crypto fund market grows, reported at around $12 billion in crypto-tracking assets as of June, products built for local investors' needs are a natural next step.
Hedging isn't free. It adds costs, and it can reduce returns in periods when the dollar strengthens against the euro. It removes a risk, but also a potential upside.
Early inflows will show whether European investors want this kind of protection, and whether rivals follow with their own hedged crypto products.
This article is for information only and is not financial advice.
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