Switzerland’s FINMA Approves First Spot Bitcoin ETF for Retail Investors

Switzerland’s financial regulator FINMA has officially approved the first Swiss-law exchange-traded fund allowing retail investors to gain direct exposure to Bitcoin.

On Thursday, BIT Asset Management announced that its Bitcoin Fund ETF (BBIT) is expected to begin trading on the SIX Swiss Exchange in November. The fund holds Bitcoin directly and is approved for public offering in Switzerland only.

Unlike most bitcoin products currently listed in Europe, which are exchange-traded products (ETPs) that carry issuer risk, the BBIT is structured as a Swiss collective investment scheme. This means the underlying assets are held separately from those of the fund management company and are “ring-fenced” for investors.

The fund falls under Switzerland’s “other funds for alternative investments” category with particular risk.

While FINMA has allowed funds that invest primarily in a basket of cryptocurrencies since 2021, this marks the first time the regulator has approved a fund that exclusively invests in Bitcoin. The approval cited Bitcoin’s trading history and higher trading volume compared with other cryptocurrencies.

However, FINMA stressed that Bitcoin remains highly volatile even when accessed through an approved ETF. The regulator also noted that other fund providers have submitted applications for similar Bitcoin ETFs.