The Swiss Financial Market Supervisory Authority (FINMA) approved, on Tuesday (20), the first Bitcoin ETF structured as an investment fund under Swiss law and open to the general public. The product, called Bitcoin Fund ETF (BBIT), will be offered by BIT Asset Management, with trading expected to begin in November on the SIX Swiss Exchange.
The fund will invest directly in Bitcoin, without relying on futures contracts to track its price. The approval allows retail investors to access the asset through a collective investment structure supervised by FINMA, previously unavailable for this type of ETF in the country.
The authorization, however, came with specific conditions. The regulator classified BBIT as an alternative fund with special risks and granted an exception to the usual diversification rules, considering Bitcoin's trading history and high liquidity compared with other cryptocurrencies.
What sets BBIT apart from Bitcoin products already traded in Europe
Switzerland already has exchange-traded cryptocurrency investment products. The main difference is in the legal structure.
Most European Bitcoin products belong to the ETP category, instruments generally structured as debt securities backed by assets. Although Swiss ETPs have collateral requirements, they are not classified as collective investment funds.
The BBIT will have assets segregated from the manager's assets, in accordance with the Swiss regime applicable to funds. This segregation offers distinct legal protection in insolvency situations, without eliminating the risks associated with the investment.
Custody is also subject to specific requirements. Under Swiss rules, collective fund assets must be held under the responsibility of a domestic custodian bank, which may delegate safekeeping to third parties subject to regulatory conditions. FINMA requires measures to reduce operational risks, cyberattacks and problems related to the protection of private keys.
In addition, the institutions responsible for distribution must provide clear warnings about volatility and possible losses, in compliance with the investment suitability assessment obligations provided for in Swiss financial legislation.
Dominik Oggenfuss, CEO of BIT Asset Management, highlighted the possibility of accessing the product through the traditional banking system:
"Investors can now access Bitcoin through an ordinary Swiss bank account," he said in the October 20 statement.
Operational ease, however, does not change exposure to the cryptocurrency's price. FINMA itself stressed that Bitcoin investments remain highly risky, even when made through an approved fund, and can cause substantial capital losses.
BIT Asset Management expects to begin trading of BBIT on the SIX Swiss Exchange in November 2026, but has not yet announced a specific date for the debut.
