Switzerland’s financial regulator, FINMA, has approved the first Swiss-law exchange-traded fund that allows retail investors to gain direct exposure to Bitcoin.
BIT Asset Management announced that its Bitcoin Fund ETF (BBIT) is expected to begin trading on the SIX Swiss Exchange in November. The public offering for the fund is restricted exclusively to Switzerland.
According to BIT Asset Management, most Bitcoin products currently listed in Europe are exchange-traded products, or ETPs, which are structured as debt instruments carrying issuer risk. In contrast, the Bitcoin Fund ETF is a Swiss collective investment scheme. Under this structure, fund assets are held separately from the management company and are ring-fenced for investors.
The fund falls under Switzerland's category for "other funds for alternative investments" with particular risk. FINMA noted that other fund providers have also submitted applications for Bitcoin ETFs.
While FINMA has permitted funds that invest primarily in a basket of cryptocurrencies since 2021, this marks the first time the regulator has approved a fund investing exclusively in Bitcoin. FINMA cited Bitcoin's established trading history and higher trading volume compared to other cryptocurrencies as factors in the decision.
At the same time, regulators emphasized that Bitcoin remains a highly volatile asset, even when accessed through an approved exchange-traded fund.
