New leveraged bitcoin and ethereum ETCs launched in Europe by HANetf

HANetf, a leading white-label ETF provider, has introduced Europe’s first leveraged cryptocurrency exchange-traded commodities (ETCs) and a short bitcoin strategy. These new offerings provide traders with cost-effective options for speculating on the volatile crypto market, as an alternative to spread betting or contracts-for-difference.

The 2x Long Bitcoin ETC (2LBT), 2x Long Ethereum ETC (2LET), and 2x Short Bitcoin ETC (2SBT) are now available on the Nasdaq Sweden exchange, featuring total expense ratios (TERs) of 2%. Nik Bienkowski, co-founder and co-chief executive of HANetf, highlighted that introducing leveraged and short products was a logical progression for the cryptocurrency sector.

“Whether one is optimistic or pessimistic about bitcoin and ethereum, these ETCs offer a transparent, regulated, and efficient way to navigate short-term market fluctuations,” Bienkowski commented.

HANetf has already established a robust portfolio of nine cryptocurrency exchange-traded products (ETPs) with a collective value exceeding $1.6 billion. These products have significantly bolstered the company’s financial standing, contributing to its success in the market.

Bitcoin and ethereum experienced notable price surges following Donald Trump’s return to the White House in November, during which he expressed his commitment to positioning the US as a global crypto hub. Trump’s executive order in January to endorse digital assets and blockchain technology further fueled the rally. However, both bitcoin and ethereum have since experienced setbacks, with bitcoin dropping from its record high of $106,188 to around $80,000. Ethereum also saw a decline from its peak of $4,811.40 to below $2,000, as reported by CoinDesk.

The erratic nature of cryptocurrency prices has prompted financial regulators to issue stern warnings regarding the risks involved in investing in digital assets. The Bank of England, for example, emphasized the significant risks that cryptocurrencies pose to investors due to the absence of institutional safeguards.

Despite these cautionary notes, investor interest in cryptocurrencies remains high, and asset managers continue to seek exposure to the asset class. By the end of the previous year, asset managers had launched 218 cryptocurrency ETPs with a combined global value of $144.4 billion. Notably, Blackrock’s iShares Bitcoin ETF (IBIT) made headlines by raising an unprecedented $60.8 billion in assets since its launch in January 2024.

The rapid growth of cryptocurrency ETPs in Europe has also been remarkable, with 151 European-listed crypto ETPs collectively valued at $19.5 billion as of January. This proliferation underscores the increasing demand for crypto investment opportunities in the region, as investors seek innovative ways to capitalize on the evolving digital asset landscape.