How European investors can now purchase bitcoin without U.S. dollar exposure

European investors seeking direct exposure to Bitcoin have historically faced a hidden layer of currency risk, as most crypto‑related products are priced and settled in U.S. dollars.

When the dollar moves against a local currency, the investor’s effective return can be significantly altered, even if the underlying Bitcoin price remains unchanged. Recognising this persistent challenge, the asset‑management platform HANetf has launched a suite of exchange‑traded certificates (ETCs) that are listed on three major European exchanges – the London Stock Exchange, Deutsche Börse in Frankfurt, and Euronext Paris.

These new instruments provide investors with the ability to hold Bitcoin exposure that is either denominated in British pounds sterling or fully hedged to the euro, thereby removing the inadvertent dollar exposure that has traditionally accompanied crypto investments. ### Why the new ETCs matter 1. **Currency‑neutral exposure**: By issuing certificates that are settled in the investor’s native currency, HANetf allows market participants to focus solely on Bitcoin’s price movements. For a UK‑based investor, a pound‑denominated ETC means that any gains or losses will reflect only Bitcoin’s performance, not the fluctuating GBP/USD exchange rate.

Similarly, euro‑hedged certificates protect continental European investors from EUR/USD volatility by using forward contracts or other hedging mechanisms to lock in the exchange rate. 2. **Regulatory clarity and custodial safety**: The ETCs are regulated products that trade on well‑established exchanges, offering the same level of investor protection and transparency as traditional equities or ETFs.

The underlying Bitcoin is stored with a reputable, insured custodian, which reduces the operational risk associated with self‑custody or unregulated crypto exchanges. 3.

**Ease of access**: Investors can buy and sell the certificates through their existing brokerage accounts, without needing to open a separate crypto‑exchange account, undergo KYC processes specific to digital‑asset platforms, or manage private keys. This seamless integration into conventional trading workflows lowers the barrier to entry for institutional and retail investors alike. 4.

**Tax efficiency**: In many European jurisdictions, the tax treatment of ETCs can be more favourable than direct cryptocurrency transactions. For example, some countries treat gains from listed securities differently from gains on crypto‑assets held in wallets, potentially offering lower capital‑gains rates or more straightforward reporting requirements.

### How the hedging works The euro‑hedged version of the Bitcoin ETC employs a currency‑hedging strategy that typically involves entering into forward contracts to sell U.S. dollars and buy euros at a predetermined rate for the life of the certificate. By continuously rolling these contracts, the product aims to neutralise the impact of EUR/USD movements on the investor’s return. While hedging incurs a cost—reflected in a modest fee built into the ETC’s expense ratio—it provides a predictable exposure that mirrors Bitcoin’s price in euro terms.

The pound‑denominated ETC, on the other hand, does not use an active hedge; instead, it simply settles all transactions in GBP. This means that the investor still bears any GBP/USD fluctuations, but the product’s pricing and settlement are directly linked to the pound, making it more intuitive for UK investors who prefer to think in their home currency. ### Market impact and potential demand The introduction of these currency‑specific Bitcoin ETCs is likely to attract a broader base of European capital.

Historically, many institutional investors have avoided crypto exposure because of the added layer of foreign‑exchange risk and the operational complexities of holding a digital asset directly. By offering a familiar, exchange‑listed vehicle that aligns with local currency preferences, HANetf is effectively bridging the gap between traditional finance and the burgeoning crypto market. Early indications suggest strong appetite from both wealth‑management firms and high‑net‑worth individuals who are looking to diversify their portfolios with a non‑correlated asset class.

The fact that the products are listed on three major exchanges also enhances liquidity, ensuring that investors can enter and exit positions with minimal slippage. ### Practical considerations for investors - **Expense ratio**: The ETCs carry a modest annual fee, typically ranging from 0.5% to 0.8%, which includes the cost of custody, administration, and, for the hedged version, the currency‑hedging expense. Investors should compare this to the cost of alternative Bitcoin exposure, such as directly purchasing the cryptocurrency on an exchange or using other crypto‑ETFs.

- **Liquidity and trading hours**: Because the certificates trade on established stock exchanges, they are subject to the same market hours and liquidity dynamics as other listed securities. This can be advantageous for investors who need to manage positions during regular European trading sessions.

- **Risk profile**: While the products eliminate direct dollar exposure, they still carry the inherent volatility of Bitcoin itself. Investors should assess their risk tolerance and consider allocating only a proportion of their portfolio to this high‑beta asset.

- **Regulatory environment**: European regulators continue to evolve their stance on crypto‑related products. However, the fact that these ETCs are approved and listed on regulated exchanges provides an additional layer of confidence compared to unregulated crypto‑exchange offerings.

### Conclusion HANetf’s launch of pound‑denominated and euro‑hedged Bitcoin ETCs marks a significant step toward mainstreaming cryptocurrency exposure within Europe’s traditional financial infrastructure. By removing the unwanted U.S. dollar risk, simplifying custodial arrangements, and delivering a regulated, exchange‑traded product, the platform addresses many of the pain points that have previously deterred institutional and retail investors from entering the crypto space.

As the market continues to mature, such innovative solutions are likely to play a pivotal role in integrating digital assets into diversified investment strategies, offering a clearer, more accessible pathway for European investors to benefit from Bitcoin’s potential upside while managing currency‑related uncertainties.