The Swiss Financial Market Supervisory Authority (Finma) has approved a Swiss-domiciled bitcoin ETF for the first time, the regulator announced on Tuesday. The product is a Swiss retail fund in the category of «other funds for alternative investments» with particular risk.

Finma did not say who is behind the fund, and therefore who won the race to launch Switzerland's first bitcoin ETF. Several signs point to a product from BIT Asset Management, formerly Matrixport Asset Management, though neither the regulator nor the company would confirm it.

When asked by finews, Finma did not deny the name. Other fund providers have also filed or announced applications for bitcoin ETFs, according to the statement.

Betting It All on Bitcoin

The terrain is not entirely new for the regulator. In 2021, it approved the first crypto fund under Swiss law, the «Crypto Market Index Fund» from Crypto Finance (finews reported).

That fund invests in a basket of cryptocurrencies, but its distribution is limited to qualified investors. The new fund, by contrast, puts all its eggs in a single asset.

To make that possible, Finma had to grant an exemption from its risk-diversification rules. It justified the move with bitcoin's long trading history and exceptionally high trading volume.

Custody Is the Crux

The institutions involved must put safeguards in place against operational and custody risks. The yardstick is Finma's supervisory notice of January 12, 2026, which among other things requires that clients' crypto assets stay out of the custodian's bankruptcy estate.

On top of that come the conduct rules of the Financial Services Act (FinSA) at the point of sale. According to Finma, these offer investors more protection than buying cryptocurrencies directly, and the risks must be clearly flagged in the fund documents.

Approved, With a Health Warning

Finma devotes the rest of its statement to caveats. Bitcoin remains a high-risk investment even through an ETF it has approved, the regulator stressed, warning that sharp price swings could cause invested capital to «lose considerable value».

The watchdog also explicitly puts the onus on providers. They must display clear warnings about volatility and the risk of loss, and pay particular attention to appropriateness and suitability checks.

First Time in a Fund Wrapper

In the US, spot bitcoin ETFs have been permitted since January 2024. The Securities and Exchange Commission (SEC) took its time with the application filed by Swiss issuer 21Shares together with Ark Invest (finews reported).

Bitcoin products have traded on the Swiss stock exchange for years, but as exchange-traded products (ETPs) without fund status. The new ETF puts the cryptocurrency into the wrapper of an approved retail fund for the first time.

The global heavyweight is the bitcoin ETF from Blackrock. The iShares Bitcoin Trust, launched in the U.S. on January 11th 2024, currently manages assets worth some $65 billion.