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FINMA Approves First Swiss Cryptocurrency Fund

Today, the Swiss Financial Market Supervisory Authority or FINMA, which is responsible for financial regulation in Switzerland, announced that it had approved the country’s first cryptocurrency-based fund.

The official announcement by FINMA stated that the authority approved the cryptocurrency fund in accordance with Swiss law. The Crypto Market Index Fund can only be invested in crypto assets by qualified investors.

This announcement by FINMA is a significant development for the Swiss crypto market. This European country is a popular destination for international crypto companies. Numerous cryptocurrency companies around the globe have launched exchange-traded product (ETPs), on the Swiss Stock Exchange since 2021.

“FINMA approved a Swiss fund which invests primarily only in cryptocurrency assets. This is essentially assets that are based on blockchain technology or distributed ledger technology for the first time. The fund is called the “Crypto Market Index Fund”, an investment fund that falls under the category of “other funds for alternative investments” and has particular risks. FINMA stated that this fund can only be distributed to qualified investors.

Switzerland’s Cryptocurrency Ecosystem

Earlier this month SIX Digital Exchange was granted regulatory approval by FINMA in order to operate a stock market and a central securities deposit for digital assets in Switzerland. Some of the most prominent cryptocurrency asset management companies in Europe are also based in the country. 21Shares AG, a Swiss-based cryptocurrency ETP issuer , crossed $1 billion in digital assets under its management across 12 different crypto ETPs. According to the Swiss digital assets management company, cryptocurrency assets are becoming more popular with wealth managers and private banks.

FINMA stated in a recent press release that it welcomes innovation in financial markets. “FINMA uses the existing provisions of financial markets laws in a consistent technology neutral manner, i.e. in accordance with the’same risk, same rules’ principle, to encourage serious innovation. It ensures that existing rules are respected and protected by using new technologies.


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