The Swiss Financial Market Supervisory Authority (FINMA) approved the country’s first exchange-traded fund investing directly in Bitcoin (BTC), giving retail investors a regulated way to gain exposure in Switzerland.
The fund falls under a Swiss category for alternative investments with special risks. FINMA exempted it from applicable risk diversification rules, citing Bitcoin’s longer trading record and greater trading volume relative to other cryptocurrencies.
Regulated firms involved with the fund must take steps to reduce operational and custody risks. Fund documents must clearly explain the risks. Approval does not eliminate Bitcoin’s market risk: invested capital can lose substantial value.
FINMA approved a crypto fund limited to qualified investors in 2021. Other providers have submitted or announced plans to submit applications for Bitcoin ETFs in Switzerland.