White-label exchange-traded fund provider HANetf has launched Europe’s first leveraged crypto exchange-traded commodities (ETCs) alongside a short bitcoin strategy, providing new tactical trading tools that are less expensive than spread betting or contracts-for-difference for bets on volatile crypto assets.
The 2x Long Bitcoin ETC (2LBT), 2x Long Ethereum ETC (2LET) and 2x Short Bitcoin ETC (2SBT) have listed on the Nasdaq Sweden exchange with total expense ratios (TERs) of 2%.
Nik Bienkowski, co-founder and co-chief executive of HANetf, said offering leveraged and short products was a “natural evolution” for the cryptocurrency market.
“Whether bullish or bearish on bitcoin and ethereum, these ETCs deliver a transparent, regulated and efficient way to navigate short-term market movements,” said Bienkowski.
HANetf already offers a range of nine cryptocurrency exchange-traded products (ETPs) with combined assets of more than $1.6 billion, which make a significant contribution to the London-based company’s revenues.
Bitcoin and ethereum prices rallied strongly after President Donald Trump returned to the White House in November with a pledge to ensure that the United States would become the crypto capital of the world. Trump signed an executive order in January to support digital assets and blockchain technology and another in March to create a national cryptocurrency stockpile.
However, the price of bitcoin has since retreated, dropping from an all-time high above $109,000 in January towards the $80,000 mark, with investors reacting negatively to Trump’s announcement on March 6 that the US government will not spend new money to buy more bitcoin for a strategic reserve.
The price of ethereum has also weakened, dropping towards the key $2,000 mark after hitting a peak above $4,800 in November 2021, according to data provider CoinDesk.
The extreme volatility associated with cryptocurrency prices has prompted many financial regulators to issue strongly worded warnings about the perils of investing in digital assets.
In January, the Bank of England said cryptocurrencies carry “significant risks” for investors.
“With no banks or central authority to protect you, if your ‘money’ is stolen or mishandled, no one is responsible for helping you get it back,” said the Bank of England.
Such warnings, however, have largely been ineffective in cooling investor interest or deterring asset managers from gaining exposure to the asset class.
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