FINMA stated that Bitcoin has a longer transaction history and a much higher market capitalization compared to most other cryptocurrencies. Citing these characteristics, the regulator granted an exception to the general rule requiring funds to diversify their investments. This allowed the fund to focus directly on Bitcoin instead of spreading its investments across different assets.
The name of the approved fund and the company that will issue it have not yet been announced. FINMA stated that it does not share private information with institutions, but noted that other fund providers have also submitted Bitcoin ETF applications or announced plans to apply. Therefore, the approval does not mean that the product will immediately begin trading on exchanges.
FINMA also stressed that the decision does not eliminate the risks associated with Bitcoin investment. Fund documents will need to clearly explain price volatility, custody issues, and operational risks. According to the regulator, investors could lose a significant portion of their investments due to sharp fluctuations in Bitcoin.
*This is not investment advice.
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