Cryptoupdated 59m ago2 min read
FINMA Approves Switzerland’s First Spot Bitcoin ETF BBIT For Retail Investors
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
FINMA approves BIT Asset Management's Bitcoin Fund ETF (BBIT) for retail exposure to Bitcoin BBIT will hold Bitcoin directly and plans November listing on SIX Swiss Exchange
Save coverage image
Explore source coverage 4 source types
Directory totals describe our source library, not outlets checked for this story.
8 outlets told this the same way.
FINMA backs BBIT
Switzerland’s financial regulator FINMA approved spot Bitcoin ETF BBIT, and the fund is structured to keep its assets separate from the asset manager’s own property. BIT Asset Management said on October 22 that FINMA approved the Bitcoin Fund ETF, which will trade under the ticker BBIT. BIT Asset Management pursued a November listing on Switzerland’s SIX Swiss Exchange, and the firm said public distribution would be limited to Switzerland.
Cointelegraph reported that the fund holds Bitcoin directly and that FINMA approved the first Swiss-law exchange-traded fund allowing retail investors direct exposure to Bitcoin. FINMA said it granted an exception to diversification rules, citing Bitcoin’s longer trading history and higher trading volume compared with other cryptocurrencies.
Ring-fenced structure
BIT Asset Management said most bitcoin products listed in Europe today are exchange-traded products (ETPs), which are debt instruments that carry issuer risk. BIT Asset Management said the Bitcoin Fund ETF is instead a Swiss collective investment scheme, where assets are held separately from those of the fund management company and are “ring-fenced” for investors. FINMA noted that other fund providers have also submitted applications for Bitcoin ETFs, while it stressed that this is the first time it approved a fund that only invests in Bitcoin.
FINMA also stressed that Bitcoin remains highly volatile even when accessed through an approved ETF. The fund is expected to begin trading on SIX Swiss Exchange in November, with its public offering restricted to Switzerland.
Custody and investor risk
BIT Asset Management said its objective was to create a truly Swiss Bitcoin ETF, and it described the underlying bitcoins as held physically and stored separately in a cold storage portfolio at a Swiss bank. The Swiss Financial Market Supervisory Authority (FINMA) validated the project on October 20, according to a press release made public before BIT Asset Management confirmed it. FINMA classified the fund as an ‘other fund for alternative investments’ under Swiss law, and it granted an exemption from the applicable risk diversification rules.
FINMA stressed that investing in Bitcoin remains highly risky, even through an approved fund, and it reiterated that the asset’s high volatility can lead to significant capital losses. Digital Watch Observatory said supervised institutions must address operational and custody risks, clearly explain the fund’s risks in its documentation, and comply with conduct requirements under Switzerland’s Financial Services Act (FinSA).