Switzerland’s financial regulator, the Swiss Financial Market Supervisory Authority (FINMA), has approved the first Swiss-law exchange-traded fund that gives retail investors direct exposure to Bitcoin. BIT Asset Management said on Thursday that its Bitcoin Fund ETF, trading under the ticker BBIT, is expected to begin trading on SIX Swiss Exchange in November and will be offered publicly only in Switzerland. The fund holds Bitcoin directly rather than using a debt-based exchange-traded product structure. According to the firm, that sets it apart from many Bitcoin products listed in Europe, which are typically exchange-traded products, or ETPs, and carry issuer risk. FINMA said the vehicle falls under Switzerland’s category for other funds for alternative investments with particular risk. The regulator also noted that other providers have filed applications for Bitcoin ETFs. While FINMA has permitted funds investing mainly in baskets of cryptocurrencies since 2021, this is the first approval for a fund investing only in Bitcoin, citing the asset’s longer trading history and higher trading volume than other cryptocurrencies.
Switzerland’s financial regulator, the Swiss Financial Market Supervisory Authority (FINMA), has approved the first Swiss-law exchange-traded fund that allows retail investors to gain direct exposure to Bitcoin.
BIT Asset Management said on Thursday that its Bitcoin Fund ETF, BBIT, is expected to begin trading on SIX Swiss Exchange in November. The fund holds Bitcoin directly and is approved for public offering only in Switzerland.
A different structure from most listed Bitcoin products in Europe
BIT Asset Management said most Bitcoin products listed in Europe today are exchange-traded products, or ETPs, which are debt instruments and carry issuer risk.
By contrast, the Bitcoin Fund ETF is structured as a Swiss collective investment scheme. The firm said the assets are held separately from those of the fund management company and are ring-fenced for investors.
FINMA says other Bitcoin ETF applications have also been filed
The fund falls under Switzerland’s category of “other funds for alternative investments” with particular risk. FINMA said other fund providers have also submitted applications for Bitcoin ETFs.
FINMA has allowed funds that invest primarily in a basket of cryptocurrencies since 2021. This is the first time it has approved a fund that invests only in Bitcoin, citing Bitcoin’s trading history and higher trading volume compared with other cryptocurrencies.
FINMA also stressed that Bitcoin remains highly volatile, even when investors access it through an approved ETF.
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