Add as a preferred source on GoogleSwiss Regulator Approves First Retail Bitcoin ETF Under Swiss Law
The fund may concentrate its holdings in Bitcoin after receiving an exemption from diversification rules. Custody and investor disclosure requirements still apply.
The Swiss Financial Market Supervisory Authority (FINMA) approved Switzerland’s first retail exchange-traded fund investing directly in Bitcoin (BTC), clearing a path for individual investors to gain exposure through a Swiss-law fund.
The Oct. 20 decision exempts the fund from diversification rules, allowing it to concentrate its holdings in Bitcoin. FINMA cited Bitcoin's established trading record and unusually high trading volume among cryptocurrencies as grounds for the exemption. Swiss law classifies the ETF as an alternative investment fund with particular risks.
Supervised institutions must address custody and operational risks, and the fund’s documents must clearly explain its risks. Sellers must explain the risk of price swings and losses and assess whether the product suits each buyer. Approval does not shield the fund from Bitcoin price swings or substantial losses.
Existing Swiss crypto exchange-traded products are debt securities; the approved ETF is an investment fund. A Swiss crypto fund approved in 2021 was limited to qualified investors. Other providers have submitted or announced Bitcoin ETF applications.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.