Switzerland’s first spot ETF to directly hold Bitcoin is set to launch on the SIX Swiss Exchange in November, with access also available to foreign banks and brokerage firms. Switzerland’s fi
Switzerland’s first spot ETF to directly hold Bitcoin is set to launch on the SIX Swiss Exchange in November, with access also available to foreign banks and brokerage firms.
Switzerland’s first spot exchange-traded fund (ETF) to invest directly in Bitcoin is expected to begin trading on the SIX Swiss Exchange in November. The exact launch date for the Bitcoin Fund ETF, which will use the codename BBIT, has not yet been announced. The fund received approval from the Swiss Financial Market Supervisory Authority on October 20th.
The remarkable aspect of the approval is that all the money invested in the fund can be directed towards Bitcoin. Investment funds in Switzerland are normally required to diversify their risk across different assets. FINMA granted BBIT an exception in this regard, taking into account Bitcoin’s long transaction history and high market capitalization.
In Europe, there are already various investment products that track the price of Bitcoin. However, a significant portion of these products are not directly investment funds, but rather structured as debt instruments issued by financial institutions. BBIT’s Bitcoin holdings will be kept separate from the fund manager’s own assets. This structure aims to offer investors a different legal protection in case the managing company experiences financial difficulties.
SIX Swiss Exchange announced that foreign banks and brokerage firms can access the ETF directly or through an existing trader, provided they meet the necessary regulatory and technical requirements. The exchange reportedly includes around 90 banks and brokerage firms from Switzerland and other countries. However, the fund has only received approval for a public offering in Switzerland. Whether foreign institutions can offer BBIT to their clients will depend on the legislation of the countries in which they operate.
FINMA confirmed that other companies have also submitted crypto ETF applications, but stressed that Ether or Solana funds would not receive automatic approval. Therefore, it should not be assumed that the decision made for Bitcoin will directly apply to other cryptocurrencies.
*This is not investment advice.
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