Switzerland approves first spot Bitcoin ETF for retail investors
BIT Asset Management’s Bitcoin Fund ETF is expected to begin trading on SIX Swiss Exchange in November, with its public offering restricted to Switzerland.
Switzerland's financial regulator FINMA has greenlit the first exchange-traded fund (ETF) in the country that allows retail investors to directly invest in Bitcoin. BIT Asset Management's Bitcoin Fund ETF (BBIT) is set to debut on the SIX Swiss Exchange in November, with the offering limited to Swiss residents. The fund holds Bitcoin directly and is structured as a Swiss collective investment scheme, ensuring that assets are held separately from those of the fund management company and are "ring-fenced" for investors.
BIT Asset Management highlighted that most Bitcoin products currently listed in Europe are exchange-traded products (ETPs), which are debt instruments carrying issuer risk. In contrast, BBIT is a Swiss collective investment scheme. FINMA noted that while other fund providers have submitted applications for Bitcoin ETFs since 2021, this marks the first time they have approved a fund that exclusively invests in Bitcoin.
This decision was influenced by Bitcoin's robust trading history and higher trading volume compared to other cryptocurrencies. However, FINMA emphasized that Bitcoin remains highly volatile, even when invested through an approved ETF.
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