A new Bitcoin investment product has entered Europe with a currency hedge built in. HANetf, an ETF provider with $9.2 billion under management, has launched the Arrow Bitcoin EUR Hedged ETF for investors seeking Bitcoin exposure while limiting the effect of moves between the euro and the U.S. dollar.
Built to strip out currency risk for euro-based investors
Because Bitcoin is priced in U.S. dollars, European investors who buy an unhedged product are exposed to two moving parts at once: the price of Bitcoin and the dollar’s movement against the euro.
The new exchange-traded commodity, or ETC, is meant to remove that second layer. HANetf described it as the world’s first euro-hedged Bitcoin exchange-traded commodity.
"With this launch, we are bringing the established logic of euro-hedged ETFs to the crypto market," Hector McNeil, co-founder and co-CEO of HANetf, said in a statement.
He added that investors have long understood that currency moves can have a meaningful effect on returns across asset classes, using gold as one example. "Similar to gold, bitcoin is priced in US dollars, meaning European investors can end up taking two views at once: a view on bitcoin itself and a view on the dollar."
HSBC will handle the hedge
According to the report, HSBC will provide the currency hedging for the product.
Euro-hedged funds typically work through forward contracts arranged by a bank. In practice, the bank agrees to sell the equivalent dollar amount for euros at a fixed rate on a future date. If the dollar weakens against the euro, the decline in Bitcoin’s value in euro terms can be offset by gains on the forward contract. The reverse also applies.
Those contracts are usually rolled monthly, and the hedge size is adjusted when the roll takes place.
U.S. Bitcoin ETFs now hold $111.1 billion, Coinglass says
The article also pointed to the performance of Bitcoin ETFs in the United States since the Securities and Exchange Commission approved them in 2024.
Products managed by firms including BlackRock, Fidelity, Morgan Stanley and others let investors buy shares that track the price of Bitcoin without having to store the cryptocurrency themselves.
Those funds now manage a combined $111.1 billion in assets, according to Coinglass, following what the report described as the most successful ETF launch in history.
The story was first published by Bitcoin Magazine and written by Mathew Di Salvo.