FINMA approves Switzerland’s first retail bitcoin ETF with direct holdings
The regulator waived diversification rules for the fund, classifying it as an alternative investment under Swiss law.
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Switzerland’s Financial Market Supervisory Authority (FINMA) approved the country’s first exchange-traded fund for retail investors that holds bitcoin directly on October 20, 2026.
FINMA classified the product as an “other fund for alternative investments” under Swiss fund law, citing a specific risk profile. The regulator granted an exemption from risk diversification rules, stating bitcoin has a “long trading history and a particularly high trading volume compared with other cryptocurrencies.” Other providers have submitted or announced applications for similar bitcoin ETFs, according to FINMA.
The approval marks the first of its kind under Swiss fund law. Existing crypto exchange-traded products in Switzerland are treated as structured products, or debt securities, under financial services law, per FINMA’s guidance issued January 12, 2026. FINMA’s earlier approval, the Crypto Market Index Fund in September 2021, was limited to qualified investors and held a basket of cryptocurrencies rather than bitcoin alone.
Under the January 12, 2026 guidance, the fund’s bitcoin must generally be held by a Swiss custodian bank. A third-party custodian, domestic or foreign, is permitted only if it provides equivalent oversight and bankruptcy protection, ensuring the assets remain separate from the custodian’s estate in case of failure. The guidance identifies operational risks, including cyberattacks and inadequate protection of private keys, which supervised institutions must mitigate.
Sellers must comply with Swiss financial services law at the point of sale, including clear warnings about volatility and the risk of loss, and a suitability check on the buyer. FINMA said this provides more protection than purchasing cryptocurrencies directly. The regulator also required the fund’s documents to highlight and explain the risks, noting that bitcoin investments remain highly risky due to sharp price swings.