HANetf launched the world's first euro-hedged bitcoin exchange-traded commodity, noting a shift in demand among its European client base.
While Bitcoin is a digital currency, it is typically priced in U.S. dollars, raising risk for investors seeking to diversify away from the greenback. As Bitcoin becomes more widely held across institutional portfolios, some investors could prefer to avoid additional dollar exposure alongside their existing U.S. equity, debt, gold, and oil holdings.
"We have already seen this evolution in gold, where currency-hedged products have become a standard part of the market, allowing investors to separate their view on the asset from their view on the dollar," said Tom Bailey, head of research at HANetf, an exchange-traded fund provider.
Bailey added that they have noted investors becoming much more conscious of how each exposure fits within a wider portfolio, particularly as bitcoin moves away from being bought directly through wallets or crypto exchanges.
"Until recently, the focus was simply on gaining regulated exposure to Bitcoin," said Stefania Barbaglio, founder of FinancialFox, a digital asset media platform. "As the market matures, investors are becoming more precise about how that exposure is structured and which risks they actually want to take."
Yusuf Fakhro, partner at cryptocurrency service provider ARP Digital, expects to see similar launches and more euro-denominated stablecoins as bitcoin becomes easier to access globally.
But he said that hedging from dollars into euros only swaps one fiat currency for another. "Long-term holders would say you're just choosing between two currencies that can be printed without limit," he added.
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