Swiss regulator FINMA approves first retail bitcoin ETF, keeps fund manager undisclosed

Switzerland's Financial Market Supervisory Authority (FINMA) on Oct. 20 approved, for the first time, an exchange-traded fund (ETF) that buys and holds bitcoin directly. The fund can be sold to retail investors, not just professional investors. FINMA said in a press release that it had noted a growing interest in investments in cryptocurrencies, particularly in bitcoin.

The fund's name, manager and listing date were not disclosed. According to The Block, a FINMA spokesperson declined to identify the fund manager, saying the regulator does not provide institution-specific information. FINMA added that other fund providers have also submitted or announced applications for bitcoin ETFs.

A single-asset fund, cleared by exemption

Swiss fund rules include a risk diversification principle that requires funds to spread money across several assets rather than concentrating it in one. A fund holding only bitcoin runs against that principle, and FINMA granted an exemption in this case. It cited bitcoin's long trading history and particularly high trading volume compared with other cryptocurrencies.

The fund is classified under Swiss law as an "other fund for alternative investments" with a specific risk. Supervised institutions must take measures to mitigate operational risks, such as hacks and IT failures, and custody risks, as set out in guidance FINMA published on Jan. 12, 2026. Rules of conduct at the point of sale under the Swiss Financial Services Act (FinSA) apply, and the fund documents must clearly highlight and explain the risks. FINMA said these measures provide a higher level of investor protection than direct investments in cryptocurrencies.

In 2021, a basket fund for qualified investors

This is not FINMA's first crypto fund approval. On Sept. 29, 2021, it authorized the Crypto Market Index Fund, which invests in a basket of cryptocurrencies and could be distributed only to qualified investors. At the time, FINMA said the fund may only invest in established cryptoassets with a sufficiently large trading volume, and it also set conditions on permitted assets, counterparties and trading platforms, as well as risk management and reporting.

The SIX Swiss Exchange has listed bitcoin exchange-traded products (ETPs) for years. According to The Block, however, existing Swiss bitcoin ETPs are debt securities rather than investment funds. The new ETF differs in that it falls under fund law and must follow rules on custody, operational risk and investor disclosure. When SIX listed the iShares Bitcoin ETP on Aug. 14, 2025, it said the total number of listed crypto products had reached 487 and that iShares was the 20th issuer. That ETP trades in Swiss francs, and its bitcoin is held offline in cold storage by Coinbase Custody International.

According to that SIX announcement, crypto ETPs listed on SIX generated trading turnover of 2.3 billion Swiss francs across 116,000 trades in January through July 2025. Turnover was up 44.5% from the same period a year earlier, and bitcoin products led with a 36.1% share, followed by Solana products at 23.0%.

Regulator: bitcoin remains highly risky even through an approved ETF

In the same press release, FINMA stressed that investments in bitcoin remain highly risky, even through an approved ETF. Because of high volatility, invested capital may lose a significant amount of its value, which investors should take into account when deciding how much to invest, it said. FINMA told financial institutions to give clear warnings about volatility and the risk of losing money when offering crypto-based instruments, and to pay particular attention to suitability assessments.

In the United States, where bitcoin ETFs are already established, spot bitcoin ETFs drew net inflows of $526.6 million on Oct. 19 local time, according to SoSoValue. BlackRock's IBIT alone took in $665.16 million, offsetting outflows from Fidelity and Grayscale funds. IBIT's net assets stand at $66.37 billion. On the same day, U.S. spot ether ETFs saw $103.3 million in net outflows, a fourth straight day of outflows. As of 10:35 p.m. KST on Oct. 20, the day of the announcement, bitcoin traded at $81,394 on Binance, down 1.2% over 24 hours, and at 108,733,000 won on South Korean exchange Upbit. The Upbit price was about 0.4% above the Binance price converted to won, a gap known as the kimchi premium.