Switzerland to Launch First FINMA-Approved Spot Bitcoin ETF for Retail Investors in November

On Tuesday, FINMA revealed the approval of a spot Bitcoin ETF that invests directly in Bitcoin, marking a first in the nation. The regulator did not disclose the fund’s issuer.

Later that week, BIT Asset Management announced that its Bitcoin Fund ETF (BBIT) will begin trading on the SIX Swiss Exchange next month. The fund directly holds Bitcoin and is authorized solely for public offerings within Switzerland.

BIT Asset Management highlighted that most Bitcoin investment products currently traded in Europe are exchange-traded products (ETPs), which are debt instruments exposed to issuer risks.

In contrast, the Bitcoin Fund ETF is structured as a Swiss collective investment scheme where the underlying assets are held separately from the management company's assets, creating a protected 'ring-fence' around investor holdings.

This fund belongs to Switzerland’s category of “other funds for alternative investments,” which carry specific risks. FINMA also noted that additional Bitcoin ETF applications from other providers are under review.

Although FINMA has permitted funds since 2021 that mainly invest in a basket of cryptocurrencies, this marks the first time it has approved a fund purely invested in Bitcoin, citing Bitcoin’s established trading history and greater trading volume relative to other cryptocurrencies.

Nevertheless, FINMA emphasized that despite accessibility via this regulated ETF, Bitcoin remains a highly volatile asset.

By approving the first retail spot Bitcoin ETF, Switzerland is providing investors with a direct and regulated avenue to access Bitcoin, reflecting a significant development in the country’s cryptocurrency investment landscape.