Swiss regulator FINMA approves country’s first spot bitcoin ETF for retail investors

The Swiss Financial Market Supervisory Authority (FINMA) has authorized Switzerland's first Bitcoin exchange-traded fund (ETF) specifically designed for retail investors. FINMA's endorsement comes amid a rising demand for cryptocurrency investments, particularly Bitcoin (BTC). Although the regulator did not disclose the individual fund issuer, multiple providers had submitted or announced Bitcoin ETF applications.

SIX Swiss Exchange recently announced that iShares would commence trading a Bitcoin exchange-traded product, fully backed by Bitcoin held in cold storage by Coinbase Custody International Limited. This approval marks a significant regulatory milestone, clearing the path for Switzerland's first retail-accessible ETF investing directly in Bitcoin. The announcement did not indicate a launch date.

FINMA previously permitted a fund for qualified investors to invest primarily in a basket of cryptocurrencies back in 2021. The regulator granted an exemption from standard risk-diversification requirements, citing Bitcoin's "long trading history and a particularly high trading volume" compared to other digital assets. However, FINMA emphasized that Bitcoin investments are subject to market risks, such as the potential for significant loss of invested capital, due to the cryptocurrency's high volatility.

Switzerland is recognized as one of the most crypto-friendly countries in Europe. In 2023, the city of Lugano became one of the world's first municipal administrations to adopt Bitcoin and Tether USDt (USDT) payments for all municipal fees.