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The Swiss Financial Market Supervisory Authority (FINMA) has approved the first public fund in Switzerland to invest directly in Bitcoin, with a focus on investor protection and transparency.
FINMA said it has observed growing interest in cryptocurrency investments, particularly Bitcoin. The approved product is an exchange-traded fund (ETF) that holds Bitcoin directly. Under Swiss law it is classified as an “other alternative investment fund” and carries a specific risk profile. Other fund providers have also submitted or announced applications for Bitcoin ETFs.
The approval follows an earlier decision in 2021, when FINMA approved a fund for qualified investors that invests primarily in a basket of cryptocurrencies. Bitcoin has a long trading history and a particularly high trading volume compared with other cryptocurrencies, and FINMA granted the fund an exemption from the applicable risk diversification rules.
To strengthen investor protection, supervised institutions must put in place measures to reduce operational and custody risks, in line with the supervisory notice FINMA published on January 12, 2026. The regulator also noted that conduct rules at the point of sale under the Financial Services Act (FIDLEG) offer greater investor protection than direct investment in cryptocurrencies. Transparency is to be improved by clearly highlighting and explaining the risks in the fund documents.
FINMA stated that the market risk associated with Bitcoin remains very high. It emphasised that investments in Bitcoin, even through an ETF it has approved, remain highly risky. Because of the strong fluctuations in cryptocurrencies, invested capital can lose considerable value, a fact that should be taken into account when making investment decisions, particularly regarding the amount invested.
FINMA also reminded supervised entities that when they offer financial instruments with cryptocurrencies as the underlying asset, the conduct rules under FIDLEG must be strictly observed. In particular, clear risk warnings must be provided, including information on volatility and the risk of loss. Special attention must also be paid to the suitability assessment required by FIDLEG.
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