FINMA clears Switzerland’s first spot Bitcoin ETF for retail investors

Switzerland’s financial regulator has approved the country’s first spot Bitcoin exchange-traded fund for retail investors, allowing a Swiss investment fund to hold the cryptocurrency directly under the country’s collective investment rules. Summary FINMA has approved Switzerland’s first retail investment fund that invests directly in Bitcoin. The regulator granted an exception to diversification requirements because of Bitcoin’s trading history and liquidity. Existing Swiss cryptocurrency ETPs are debt securities, while the new ETF operates under investment fund law. FINMA requires safeguards covering custody, operational risks, disclosures and investor suitability. The regulator has not identified the approved fund or disclosed a trading date, while other providers pursue applications. In its October 20 announcement, the Swiss Financial Market Supervisory Authority (FINMA) said the ETF belongs to the category of “other funds for alternative investments” with particular risks. Other providers have submitted or announced applications, but FINMA did not identify the newly approved fund or its manager in the public notice. The approval applies to a retail fund structure, not to Switze...