FINMA approves Switzerland’s first retail Bitcoin fund

• Switzerland’s Financial Market Supervisory Authority has approved a retail investment fund investing directly in Bitcoin.
• The fund received an exemption from certain risk-diversification requirements under Switzerland’s alternative investment fund framework.
• The approval expands regulated access to Bitcoin investment while requiring providers to address custody and operational risks.

The Swiss Financial Market Supervisory Authority FINMA has approved Switzerland’s first retail fund investing directly in Bitcoin (BTC).

The fund falls under Switzerland’s alternative investment category, which carries specific risks under national law.

FINMA approved an exemption from applicable risk-diversification rules, citing Bitcoin’s long trading history and relatively high trading volume.

The regulator requires supervised institutions to address custody and operational risks to strengthen investor protection.

Fund documents must clearly explain investment risks, while financial firms must provide warnings about volatility and potential losses.

FINMA authorised a cryptocurrency fund for qualified investors in 2021, but the latest approval covers a retail fund investing directly in Bitcoin.

The regulator said other fund providers have submitted or announced applications for Bitcoin exchange-traded funds.

The approval expands regulated retail access to Bitcoin in Switzerland, but FINMA warns that investors could still lose significant capital.