Switzerland’s financial regulator has approved the country’s first retail fund that invests directly in Bitcoin.
The Swiss Financial Market Supervisory Authority, or FINMA, said Tuesday that the product is an exchange-traded fund, meaning its shares trade on an exchange like listed stock. Under Swiss law, FINMA classified it as an "other fund for alternative investments" with a specific risk profile.
FINMA granted a diversification exemption
FINMA said it waived the fund’s applicable risk diversification rules because Bitcoin has a long trading history and, compared with other cryptocurrencies, particularly high trading volume.
"As Bitcoin has a long trading history and a particularly high trading volume compared with other cryptocurrencies, FINMA has approved an exemption from the applicable risk diversification rules in this case," the regulator said.
Earlier approval was limited to qualified investors
FINMA had already approved a crypto fund in September 2021, the Crypto Market Index Fund. That product, however, could only be sold to qualified investors, not the general public. It also invested mainly in a basket of crypto assets rather than Bitcoin alone.
Custody and operational risk rules remain in place
Institutions supervised by FINMA must reduce operational and custody risks under guidance the regulator published on Jan. 12, 2026. That guidance identifies cyberattacks and inadequate protection of private keys, the cryptographic credentials that control access to coins, as operational risks.
Under the same guidance, a Swiss custodian bank generally has to hold a Swiss fund’s Bitcoin. It may delegate safekeeping to a third-party custodian in Switzerland or abroad, but that custodian must be subject to equivalent oversight of its financial soundness and provide equivalent bankruptcy protection for crypto assets. In practice, that means the coins can be separated from the custodian’s estate if the custodian fails.
Sales rules require risk warnings and suitability checks
Firms distributing the fund must follow the conduct rules set out in Swiss financial services law at the point of sale. That includes clear warnings about volatility and the risk of losses, along with a check on whether the product is suitable for the buyer. FINMA said that offers more protection than buying crypto directly.
Different from existing Swiss crypto ETPs
Crypto exchange-traded products already have listing rules on both Swiss exchanges. FINMA’s January guidance treats those products as structured products under financial services law.
The newly approved vehicle is different. It is an investment fund under Swiss fund law.
U.S. spot Bitcoin ETFs were negative for October
Decrypt also noted that U.S. spot Bitcoin ETFs, which track Bitcoin’s price and trade like stocks through brokerage apps, were down about $615 million for October through Friday.
BlackRock’s IBIT, the largest of the 12 funds with $66.37 billion in net assets, recorded $665.2 million in net inflows on Monday and was the only fund to post inflows that day. Total net inflows across the group reached $526.6 million, according to Decrypt’s ETF tracker.
Fund name and launch date were not disclosed
FINMA’s release did not name the Swiss fund or its issuer, and it did not provide a launch date. The regulator said only that other providers have submitted or announced applications for Bitcoin ETFs.
