Switzerland approves first retail spot Bitcoin ETF

First Swiss retail spot Bitcoin ETF cleared

Switzerland's financial regulator FINMA has approved the first Swiss-law exchange-traded fund (ETF, a fund traded on a stock exchange) that allows retail investors to gain direct exposure to Bitcoin.

BIT Asset Management said its Bitcoin Fund ETF (BBIT) is expected to begin trading on SIX Swiss Exchange in November. The public offering is restricted to Switzerland only.

Key details from the approval

• Regulator: FINMA
• Fund: Bitcoin Fund ETF (BBIT) by BIT Asset Management
• Structure: A Swiss collective investment scheme, where assets are held separately from the fund management company and are ring-fenced for investors.
• Category: Falls under Switzerland's "other funds for alternative investments" category with particular risk.
• Trading: Expected to begin on SIX Swiss Exchange in November.
• Access: Public offering restricted to Switzerland only.

How this fund differs from products in Europe

BIT Asset Management said most Bitcoin products listed in Europe today are exchange-traded products (ETPs, debt instruments traded on an exchange), which carry issuer risk. By contrast, this fund is a Swiss collective investment scheme with assets ring-fenced for investors.

Regulator notes on scope and risk

FINMA noted that other fund providers have also submitted applications for Bitcoin ETFs. While 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 only invests in Bitcoin. The regulator cited Bitcoin's trading history and higher trading volume compared with other cryptocurrencies as reasons for the approval.

Even so, FINMA stressed that Bitcoin remains highly volatile even when accessed through an approved ETF.

Sources

• Cointelegraph