FINMA Approves Switzerland’s First Public Fund Investing Directly in Bitcoin
Swiss regulator FINMA has approved the first publicly available fund under Swiss law that invests directly in bitcoin. Details about the issuer and trading start have not yet been disclosed.
On October 20, FINMA approved the first publicly available bitcoin ETF under Swiss law that invests directly in bitcoin. The Swiss regulator emphasized that the approval does not change the high risk associated with bitcoin or the possibility of a significant loss of invested capital.
The regulator legally classified the fund as an “other fund for alternative investments” with a special risk profile. This category takes the product’s specific characteristics into account and requires investors to receive appropriate information about the risks.
Bitcoin ETF Granted an Exemption from Diversification Rules
When approving the fund, FINMA granted an exemption from risk-diversification rules. It cited bitcoin’s long trading history and high trading volumes as the reason. The fund may therefore hold bitcoin directly even though its portfolio is not spread across multiple assets under standard diversification rules.
The regulator also established requirements concerning operational and custody risks—that is, risks associated with managing and safeguarding digital assets. The fund documentation must contain clear risk warnings, and the product’s sale is to be governed by the rules of Switzerland’s FIDLEG Financial Services Act.
In its announcement, FINMA explicitly warned that bitcoin remains a high-risk investment even when it is available through a regulated fund. The value of invested capital may fall significantly.
Difference from Existing Products
The Swiss market already had exchange-traded products linked to bitcoin and crypto funds intended for qualified investors. However, according to FINMA, the new approval is the first case of a public fund under Swiss law that holds bitcoin directly and is intended for the general public.
The difference lies mainly in the fund’s legal regime and in oversight of its operation, asset custody and information provided. The approval expands the regulatory framework for such a product, but not the underlying asset’s risk profile itself.
Fund Name and Trading Date Still Unavailable
The regulator’s announcement does not include the fund’s name, manager, ticker, exchange or trading start date. It is therefore not confirmed whether the product is already practically available to retail clients. FINMA confirmed its approval, not a specific market-launch date.
The issuer should provide further information, particularly through the prospectus and fund documentation. Important details will include fees, trading arrangements, bitcoin custody and the precise extent of availability to individual client groups. The relevant exchange should subsequently publish confirmation of the listing.
FINMA also stated that further applications for bitcoin ETFs had already been submitted or announced. The regulator did not specify their outcomes or parameters in the current announcement.
Sources
- FINMA – Primarily confirms approval of the first Swiss public ETF investing directly in bitcoin, its legal category, the diversification exemption and investor-protection conditions.
- investrends.ch – Independently describes it as a public fund under Swiss law also available to nonprofessional investors and distinguishes it from earlier crypto funds.
Verified and updated: October 20, 2026, 15:19
