On March 12, 2025, HANetf, a prominent provider of white-label ETFs in Europe, unveiled the continent’s inaugural leveraged cryptocurrency exchange-traded commodities (ETCs). These new financial instruments offer both 2x leveraged and short exposure for major cryptocurrencies like Bitcoin and Ethereum.
As reported by ETFStream, the launch of these products enables investors to enhance their exposure to the fluctuations of Bitcoin and Ethereum, whether they are anticipating price increases or decreases.
Positioned as a more cost-effective alternative to traditional derivatives such as spread betting or contracts-for-differences, these ETCs come with the advantage of being regulated and efficient.
HANetf ETC: How the Leverage and Shorting Work
The newly launched products include the 2x Long Bitcoin ETC (2LBT), 2x Long Ethereum ETC (2LET), and 2x Short Bitcoin ETC (2SBT), all of which are listed on the Nasdaq Sweden exchange with a total expense ratio (TER) of 2%.
Nik Bienkowski, co-founder and co-CEO of HANetf, highlighted this development as a “natural evolution” for the cryptocurrency market.
“Whether bullish or bearish on Bitcoin and Ethereum, these ETCs provide a transparent, regulated, and efficient avenue for navigating short-term market fluctuations,” he said.
Currently, HANetf manages a suite of nine cryptocurrency exchange-traded products (ETPs) with assets surpassing $1.6 billion.
Trump’s Crypto Strategy and Bitcoin Volatility
The introduction of these leveraged crypto ETCs aligns with growing volatility in the cryptocurrency landscape, influenced partly by pivotal political and economic changes.
Following Donald Trump’s re-election in November 2024, both Bitcoin and Ethereum experienced a marked upsurge, spurred by the administration’s commitment to establish the United States as a frontrunner in digital assets.
In January, Trump signed an executive order supporting blockchain technology and unveiled intentions for a national cryptocurrency reserve.
However, Bitcoin’s price has since pulled back from its record high of $106,188 in January to approximately $80,000.
This downturn coincided with a negative market reaction to Trump’s March 6 declaration, indicating that the government would refrain from committing additional funds for Bitcoin purchases in its strategic reserve.
In a similar vein, Ethereum’s value has declined, inching towards the critical support level of $2,000 after reaching a peak of $4,811.40 in November 2021.
Despite cautionary messages from financial regulators like the Bank of England, there remains a robust global interest in investment products centered on cryptocurrency.
At the end of last year, asset managers launched 218 cryptocurrency ETPs worldwide, accumulating $144.4 billion in assets.
Additionally, BlackRock’s iShares Bitcoin ETF (IBIT), introduced in January 2024, achieved a record fundraising milestone within the ETF sector, with its assets initially hitting $60.8 billion before settling at $50.1 billion.
The Growing Competition in Crypto-Based Investment Products
The arrival of HANetf’s leveraged and inverse crypto ETCs emerges amid escalating competition within the asset management industry, as firms seek innovative strategies to attract capital to digital assets.
Other companies, such as Bitwise, have also entered this space with crypto-centric investments. Recently, Bitwise rolled out the Bitcoin Standard Corporations ETF, featuring publicly traded firms that hold substantial amounts of Bitcoin, including MicroStrategy, MARA Holdings, and Galaxy Digital.
Beyond individual products, legislative developments could further stimulate institutional engagement. On March 11, U.S. Senator Cynthia Lummis reintroduced the BITCOIN Act, a proposal advocating for a Strategic Bitcoin Reserve aimed at enhancing national financial stability.
This initiative, supported by several Republican senators, aims to designate government resources for the acquisition of up to 1 million Bitcoin, roughly 5% of the total supply.
Europe Responds with the Push for a Digital Euro
As the United States deepens its foray into cryptocurrencies, European policymakers proceed with caution.
Pierre Gramegna, the managing director of the European Stability Mechanism, cautioned that Trump’s pro-crypto policies might threaten Europe’s monetary independence.
In contrast to the U.S. position, the European Central Bank (ECB) has explicitly stated its intent not to incorporate Bitcoin into its reserves.
Since 2021, the ECB has been working on a digital euro, aiming to ensure Europe’s monetary autonomy and lessen reliance on private and foreign digital payment methods. A final decision regarding the digital euro is anticipated later in 2025.
If actualized, the digital euro would serve alongside physical cash, providing a secure, central bank-backed alternative to cryptocurrencies and stablecoins.
As the U.S. progresses in integrating Bitcoin into its financial framework, European policymakers are advocating for the timely implementation of the digital euro to safeguard economic sovereignty.
The rollout of HANetf’s leveraged and short crypto ETCs could be particularly timely for European investors facing a volatile market landscape.
As Bitcoin and Ethereum’s values oscillate amid wider geopolitical factors, European investors are confronted with critical choices: Do leveraged ETCs like those from HANetf offer a reliable and sustainable pathway through this uncertainty?
With the U.S. doubling down on cryptocurrency, Europe’s thoughtful strategy—as underscored by its digital euro initiative—highlights contrasting financial trajectories. Investors must navigate these complexities, weighing potential short-term returns against the larger regulatory and economic environment.
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