FINMA’s decision opens a Swiss crypto fund structure to retail investors, following a 2021 fund restricted to qualified investors. Sales conduct and custody requirements apply, while exposure to Bitcoin’s price risk remains.
The Swiss Financial Market Supervisory Authority FINMA has approved the first Swiss exchange-traded fund (ETF) open to retail investors that invests directly in Bitcoin. Its October 20, 2026 announcement places the product in the Swiss legal category of “other funds for alternative investments” with a specific risk. FINMA says other providers have also submitted applications for similar products or announced plans to do so.
FINMA granted an exemption from risk diversification requirements when assessing the ETF’s application to invest solely in Bitcoin. The regulator based its application-specific decision on Bitcoin’s long trading history and particularly high trading volume.
Approval is confirmed; commercial details are still undisclosed. FINMA’s announcement does not identify the provider, fund name, ticker, fees, listing exchange or first trading day. When investors will be able to buy the fund, and from which countries, also remains undisclosed.
How it differs from the 2021 fund and existing ETPs
On September 29, 2021, FINMA approved the Crypto Market Index Fund as Switzerland’s first crypto fund. The Crypto Market Index Fund was restricted to qualified investors and invested in a basket of cryptoassets. The newly approved ETF allows direct investment in Bitcoin within a fund open to retail investors.
Cryptoasset ETPs already trade on the Swiss exchange. SIX’s product explanation describes ETPs in the Swiss market as collateralised, non-interest-paying bearer debt securities. Unlike ETFs, they are not funds under Switzerland’s Collective Investment Schemes Act and do not require FINMA approval as funds.
Sales protections and custody requirements
FINMA says the approved fund provides greater protection at the point of sale than a direct crypto purchase. Conduct requirements under the Financial Services Act (FinSA) will apply, and fund documents must clearly disclose the risks. The regulator tells supervised institutions offering crypto-related financial instruments to pay particular attention to suitability assessments and to explain price volatility and possible losses clearly to clients.
For custody, today’s announcement refers to FINMA’s guidance published on January 12, 2026. It addresses cyberattacks, inadequate protection of private keys and dependence on external service providers. Where assets are held abroad, institutions must also examine the legal conditions for recovering them if the custodian becomes insolvent.
Section 3.3 of the guidance, covering collective investments, generally requires Swiss fund assets to be held by a Swiss custodian bank. Custody can be delegated where appropriate; cryptoassets require equivalent prudential supervision and equivalent bankruptcy protection. Investors must be told about delegation risks in the prospectus and basic information sheet. The newly approved ETF’s custodian bank and any subcustodian have not yet been disclosed.
FINMA’s January announcement identifies keeping clients’ cryptoassets outside the custodian’s bankruptcy estate as a central requirement. Using an external provider does not remove the authorised financial institution’s responsibility. Safekeeping and insolvency segregation requirements do not reimburse losses caused by a fall in Bitcoin’s market price.
The 37:44–38:25 section of SIX’s official webinar, held on November 15, 2022 and published the following day, discusses the choice between holding crypto directly and accessing it through an ETP. The German-language recording describes market services available in 2022.
Fund approval does not remove Bitcoin’s price risk
FINMA warns that high volatility can substantially reduce the value of invested capital. Its written announcement states:
“investments in Bitcoin – even through an approved ETF – remain highly risky.”
FINMA, October 20, 2026
FINMA announced the approval on its official account on October 20:
FINMA — approval of the first direct Bitcoin retail fund
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