Switzerland Clears Its First Spot Bitcoin ETF for Retail Investors

Switzerland’s financial regulator, FINMA, has signed off on the first Swiss law exchange traded fund that gives everyday investors direct exposure to Bitcoin. BIT Asset Management said on Thursday that its Bitcoin Fund ETF, ticker BBIT, should start trading on the SIX Swiss Exchange in November. The fund holds Bitcoin itself, and its public offering is limited to Switzerland. It sits in the Swiss category of other funds for alternative investments with particular risk. FINMA added that other providers have also filed applications for Bitcoin ETFs.

Why a Fund Structure Matters Compared With ETPs

BIT Asset Management pointed out that most Bitcoin products listed across Europe are exchange traded products, which are debt instruments that carry issuer risk. Its fund is a Swiss collective investment scheme, so the assets are kept apart from the management company’s own money and ring-fenced for investors.

First Bitcoin-Only Fund Approved by FINMA

Since 2021, FINMA has permitted funds that invest mainly in a basket of cryptocurrencies, but this is the first time it has cleared a fund holding only Bitcoin. The regulator pointed to Bitcoin’s trading history and higher volume compared with other coins. It also warned that Bitcoin stays highly volatile, even when bought through an approved ETF.