BIT Asset Management, the Zurich-based arm of crypto firm BIT, has received approval from Swiss regulator FINMA for its Bitcoin Fund ETF (BBIT).
It is the first exchange-traded fund in Switzerland to invest directly in bitcoin. The company expects trading on SIX Swiss Exchange to begin in November.
FINMA announced the approval but did not name the fund manager.
However, BIT AM, a wholly owned subsidiary of BIT, identified itself as the manager in its own announcement.
In addition, the company says BBIT is currently the only spot bitcoin ETF in Europe.
A spot bitcoin ETF tracks the price of bitcoin by holding the asset itself, rather than futures or other derivatives.
Investors can trade its shares through a standard brokerage account.
For example, BlackRock’s iShares Bitcoin Trust (IBIT) and ten other spot bitcoin ETFs launched in the US in January 2024.
Most bitcoin products listed in Europe, however, are exchange-traded products (ETPs).
Given ETPs are debt instruments, investors face the risk that the issuer cannot meet its obligations.
By contrast, BBIT is a Swiss collective investment scheme. The fund keeps its assets separate from those of the fund management company and ring-fenced for investors. It is also open to both retail and qualified investor.
“Launching the first Swiss Bitcoin ETF is an important milestone for us, reflecting our long-term commitment to the Swiss market and our ambition to bridge traditional finance with emerging technologies,”
said John Ge, CEO at BIT Group.
“Investors can now access bitcoin through an ordinary Swiss bank account, with Swiss fund governance, independent custody and daily transparency on holdings,”
said Dominik Oggenfuss, CEO at BIT Asset Management.
Featured image: Edited by Fintech News Switzerland, based on image by ledyumnica via Magnific.
