Switzerland has approved its first exchange-traded fund (ETF) that directly holds spot Bitcoin. It is available for retail investors. The Swiss Financial Market Supervisory Authority (FINMA) has announced today that it has authorized the first publicly offered fund under Swiss investment fund law to invest directly in Bitcoin.
Zurich-based BIT Asset Management AG said it has received approval for its Bitcoin Fund ETF. The ETF will trade under the ticker BBIT. The fund is expected to begin trading on the SIX Swiss Exchange in November.
BIT Asset Management described BBIT as Switzerland’s first and Europe’s only spot Bitcoin ETF structured as a collective investment scheme. The launch would provide retail investors with access to Bitcoin through a regulated fund structure.
FINMA Approves Bitcoin Fund Under Alternative Investment Rules
FINMA has classified this ETF product with a specific risk designation. It has also granted it an exception to standard risk-diversification requirements. FINMA cited Bitcoin’s comparatively long trading history and high trading volumes relative to other cryptocurrencies. According to FINMA, other fund providers have also submitted or announced applications for similar Bitcoin ETFs.
The new fund differs from existing Swiss Bitcoin exchange-traded products (ETPs). Earlier funds are typically structured as debt securities and expose investors to the credit risk of their issuers. Under the collective investment scheme structure, the fund’s assets are held separately from the management company. This helps them protect from claims against the manager.
However, this structure does not eliminate Bitcoin’s market risk. Investors remain exposed to price fluctuations and could experience substantial losses if Bitcoin declines.
Investor Protection and Custody Requirements Remain Central
In its announcement, FINMA has emphasized that authorization does not make Bitcoin a low-risk investment. So, institutions must implement safeguards to address operational and custody risks. Financial service providers distributing the fund must also comply with conduct requirements under Switzerland’s Financial Services Act (FinSA).
The development has come after the United States launched multiple spot Bitcoin ETFs in January 2024. Those products attracted significant investor interest and provided BTC price a significant support. Now, Switzerland’s approval has added an option to Europe’s Bitcoin investment landscape too.