HANetf Launches Euro-Hedged Bitcoin ETC in Europe

HANetf has launched the Arrow Bitcoin EUR Hedged ETC (EBTC), a new exchange-traded commodity designed to offer euro-based investors exposure to Bitcoin while aiming to mitigate the volatility of the Euro-US Dollar exchange rate. Trading commenced on Euronext Paris on September 29 and on the Xetra trading venue on September 30.

This product aims to isolate the performance of Bitcoin from currency fluctuations. When a euro-based investor purchases a standard Bitcoin exchange-traded product, they are effectively making two investments: one in the price of Bitcoin and another in the direction of the US Dollar against the Euro. The Arrow Bitcoin EUR Hedged ETC seeks to neutralize this currency risk through daily foreign exchange hedging, with HSBC acting as the counterparty for these operations.

The ETC is physically backed by Bitcoin and has a total expense ratio of 49 basis points, plus the daily FX hedging cost. The product launched with initial net assets of approximately €247,675. Its ISIN is XS3438606090, and its inception date was September 25.

HANetf calls this the world’s first euro-hedged Bitcoin exchange-traded commodity. This launch addresses a gap in the European market, as euro-hedged versions of traditional commodity ETCs, such as gold, have been available for years and have accumulated approximately $23 billion in European assets. In comparison, European crypto ETCs currently hold around $12 billion in total assets.

By offering a hedged product, HANetf provides a tool that may appeal to institutional investors becoming more comfortable with digital assets and expecting similar investment vehicles to those available for traditional asset classes. The involvement of a traditional institution like HSBC in providing FX hedging for a Bitcoin product signifies increasing integration between digital assets and established financial systems.

While the exact daily FX hedging cost is not specified beyond being “small,” the product’s structure is designed to be operationally simpler and potentially more cost-effective for investors who would otherwise manage their own currency overlay strategies. There is uncertainty regarding the future market share that hedged Bitcoin products might achieve compared to their gold counterparts. If hedged Bitcoin products were to capture a market share similar to that of hedged gold products within their respective markets, the potential addressable market for EBTC could be substantial.

HANetf has a history in the European crypto ETP market, having helped launch the Bitwise Physical Bitcoin ETP in 2020 and introducing Europe’s first leveraged and short crypto ETPs in 2025. The introduction of the euro-hedged Bitcoin ETC is viewed as a logical extension of HANetf’s product roadmap for institutional investors.

Why This Matters

The launch of the Arrow Bitcoin EUR Hedged ETC (EBTC) by HANetf provides euro-based investors with a new option to gain Bitcoin exposure while mitigating the volatility of the EUR/USD exchange rate. The exact daily FX hedging cost is not specified, only that it is ‘small’.

Broader Context

Bitcoin is priced in dollars.