Switzerland Approves First Spot Bitcoin ETF for Retail Investors
Summary
- FINMA, Switzerland’s financial regulator, said it had approved the launch of the first spot Bitcoin ETF available to retail investors.
- The approval removes a key regulatory hurdle for the launch of Switzerland’s first ETF offering direct Bitcoin exposure that retail investors can access.
- FINMA said Bitcoin’s high price volatility could significantly reduce the value of invested capital.
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Switzerland’s financial regulator has approved the country’s first spot Bitcoin exchange-traded fund available to retail investors.
Cointelegraph reported on Oct. 20 that the Swiss Financial Market Supervisory Authority, or FINMA, approved the launch of an ETF that invests directly in Bitcoin.
FINMA cited rising demand for crypto-asset investments, particularly those centered on Bitcoin, as a reason for the approval. Several asset managers have applied to launch Bitcoin ETFs or disclosed related plans.
The decision clears a key regulatory hurdle for the launch of Switzerland’s first ETF offering direct Bitcoin exposure to retail investors. FINMA did not disclose the product manager or a launch date.
Switzerland previously approved, in 2021, a fund for qualified investors that invests in a basket of crypto assets. The new product stands out because it expands access to retail investors.
FINMA said Bitcoin has a longer trading history and higher trading volume than other crypto assets. It also warned that the cryptocurrency’s high price volatility could sharply reduce the value of an investment.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.