Switzerland's financial regulator has approved a Bitcoin (BTC) exchange-traded fund for retail investors, allowing a product that will hold the asset itself to be offered beyond qualified investors.
The Swiss Financial Market Supervisory Authority (FINMA) previously approved a cryptocurrency fund in 2021, but that product was restricted to qualified investors. The new approval is the country's first for a Bitcoin ETF intended for retail buyers.
FINMA classified the fund as an alternative investment with special risks. It waived diversification requirements because Bitcoin has traded for longer and in greater volume than other cryptocurrencies.
That exemption does not protect investors from a drop in Bitcoin's price. Firms involved with the ETF must take steps to reduce risks tied to custody and operations, and the fund documents must explain the risks. Investors could lose a substantial share of their capital.
Other providers have filed applications for Bitcoin ETFs in Switzerland or said they plan to file.
