Leading white-label exchange-traded fund (ETF) provider in Europe, HANetf, has boldly introduced the continent’s first leveraged crypto ETCs combined with a short Bitcoin strategy. For investors, these creative products offer fresh tactical trading tools and a reasonably priced substitute for conventional techniques as spread betting or contracts-for- difference (CFDs) for betting on risky cryptocurrencies.
For HANetf, which has been leading front-runner in offering creative financial products throughout Europe, this launch marks yet another turning point. The company is increasing the spectrum of possibilities open to investors wishing to profit on changes in the cryptocurrency market by including these leveraged and short crypto ETCs.
ETCs for Leveraged Crypto:
Leveraged crypto ETCs are financial tools using leverage that magnify the returns of an underlying cryptocurrency. A 2x leveraged Bitcoin ETC, for instance, would seek twice daily return on Bitcoin. In the same vein, inverse or short ETCs let investors profit from price falls in an asset—in this case, Bitcoin—by travelling against its price swings.
Leveraged and inverse strategies are among HANetf’s new products, which let investors occupy either side of the market. Traders who wish to make tactical wagers on short-term price changes without directly owning cryptocurrencies or participating in sophisticated derivative contracts may find these instruments very attractive.
Why This Launch Counts?
For various reasons, the addition of Europe’s first leveraged crypto ETCs and a short Bitcoin strategy is noteworthy.
Accessibility: These products simplify the access to advanced trading tactics for institutional and retail investors without requiring specific accounts or direct exposure to cryptocurrencies.
Traded on controlled exchanges, these ETCs are less costly and more transparent than spread betting or CFDs.
Shorting Bitcoin gives investors a means to protect their investments in times of market volatility or dropping prices.
Novelty: The introduction of HANetf underlines Europe’s growing demand for complex crypto investment solutions and helps to support its leadership in financial innovation.
HANetf’s Contribution to Blockchain Development
HANetf has a background of innovating European financial products. Established in 2017 by Hector McNeil and Nik Bienkowski, the company has unveiled various first-of-their-kind products including ETFs targeted at space exploration, real carbon credits, and medical cannabis. Additionally helping to create Europe’s first centrally cleared Bitcoin ETP on Deutsche Börse Xetra is the company.
By extending its white-label platform capabilities to cryptocurrency ETCs with its most recent launch, HANetf is using its experience. The platform of the company guarantees compliance with European rules and lets asset managers effectively create and control crypto ETCs.
Emphasising the value of this launch, co-founder and co-CEO of HANetf Nik Bienkowski said, “We believe these new leveraged and inverse crypto ETCs provide investors with tactical tools that are both cost-efficient and easy to use compared to traditional methods like CFDs or spread betting.”
How These Products Function
Leveraged crypto ETCs by HANetf increase daily returns by use of financial instruments like swaps or futures contracts. For example, a 2x leveraged Bitcoin ETC would seek to provide twice the daily percentage movement in the price of Bitcoin.
Aiming to produce the opposite daily percentage change of Bitcoin’s price, an inverse Bitcoin ETC would let investors profit from dips.
These products reset daily, hence their effectiveness depends more on daily price fluctuations than on long-term patterns. They therefore are ideal for short-term traders looking to profit from market volatility.
Advantages Over Conventional Trade Strategies
Traders seeking inverse exposure to cryptocurrencies have long utilised conventional techniques including CFDs and spread betting. Due to counterparty exposure, these strategies can come with more expenses, less openness, and more risk, though.
Leveraged and inverted crypto ETCs from HANetf have many benefits:
Cost Effectiveness: Less fees than on CFDs or spread betting systems.
Transparency: traded on controlled exchanges under well defined price policies.
Accessibility: Provided by regular brokerage accounts without calling for specific trading authorisation.
Operate inside accepted European legal systems to provide investors even more protection.
Results for Investors
The release of these items gives investors more chances to diversify their approaches in the bitcoin market:
Hedging Tools: In negative markets, the short Bitcoin approach may help to offset long positions.
Leveraged products let traders increase their gains during times of great market volatility.
These devices allow one to be exposed to changes in the value of cryptocurrencies without personally possessing digital assets.
Investors should be aware of the dangers connected to leveraged products, though, especially increased losses should market moves contradict their positions.
Conclusion
With his introduction of Europe’s first leveraged crypto ETCs and a short Bitcoin strategy, HANetf represents a major advancement in offering complex trading instruments for cryptocurrency investors. Offering reasonably priced and easily available substitutes for conventional techniques like CFDs or spread betting, HANetf is enabling traders with additional choices to negotiate the erratic terrain of digital assets.
Innovative financial instruments like this will be very important in determining how investors interact with this new asset class as cryptocurrencies keep gaining general acceptance.
