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- Switzerland’s financial regulator approved the country’s first retail fund that holds Bitcoin directly.
- BIT Asset Management expects its BBIT fund to begin trading on the SIX Swiss Exchange in November.
- FINMA classified the product as an alternative-investment fund carrying special risk and granted a diversification exception.
The Swiss Financial Market Supervisory Authority (FINMA) approved a retail fund that holds Bitcoin directly, adding a Swiss investment-fund structure to existing exchange-traded crypto options. BIT Asset Management said its Bitcoin Fund ETF, ticker BBIT, is expected to begin trading in November.
BIT Plans BBIT Trading on SIX Swiss Exchange
FINMA announced the approval on Oct. 20, describing it as the country’s first exchange-traded retail fund investing directly in Bitcoin. BIT Asset Management separately identified the approved product as BBIT.
The manager expects trading to begin on SIX Swiss Exchange in November but did not specify a date. It said the fund would hold Bitcoin directly, rather than futures or other derivatives, and would be accessible through ordinary brokerage accounts.
BIT Asset Management Chief Executive Dominik Oggenfuss said the product combines Swiss fund governance, independent custody and daily transparency on holdings. The manager is a Zurich-based subsidiary of digital-asset group BIT, formerly known as Matrixport.
BBIT Uses a Fund Structure Alongside Existing Crypto Products
Swiss investors already have access to exchange-traded cryptocurrency products. SIX describes its exchange-traded products (ETPs) as collateralized bearer debt securities and has hosted cryptocurrency ETPs since 2018.
BBIT is instead a collective investment scheme under Swiss law. BIT Asset Management said its assets are held separately from those of the fund management company and ring-fenced for investors.
The distinction concerns the legal structure through which investors obtain Bitcoin exposure, rather than the introduction of cryptocurrency trading on the exchange. FINMA classified the approved ETF as an alternative-investment fund carrying special risk, while its earlier 2021 crypto-fund authorization was restricted to qualified investors.
FINMA Grants Diversification Exception and Requires Safeguards
FINMA granted an exception to applicable diversification requirements, citing Bitcoin’s comparatively long trading history and high trading volume. It said supervised institutions must address operational and custody risks and clearly explain those risks in fund documents.
The regulator also emphasized sales-conduct requirements under Switzerland’s Financial Services Act, including risk warnings and applicable suitability assessments. It warned that Bitcoin’s volatility could still cause investors to lose a substantial portion of their capital.
Other providers have submitted or announced Bitcoin ETF applications. The regulator’s statement did not identify those applicants or establish a timetable for further approvals.
