TL;DR Breakdown:
- FINMA has approved the first-ever Swiss crypto fund.
- The fund is only available for qualified investors, and it will invest solely in established cryptocurrencies.
The financial regulatory body of the Switzerland government has greenlighted the country’s first fund that invests in cryptocurrencies. According to the press report by the Financial Market Supervisory Authority (FINMA), the Swiss crypto fund is in accordance with the country’s law but will be limited to only qualified investors.
Considerations for the Swiss crypto fund
Known as the “Crypto Market Index Fund,” the Swiss crypto fund was approved by the FINMA under the “other funds for alternative investments” category. It will primarily invest in digital currencies. Furthermore, the regulator noted that the fund is subjected under the country’s existing financial market laws to curtail the risks associated with underlying digital currencies.
As part of risk management measures, the Swiss crypto fund is bound to invest in only established crypto assets with significant trading volume. The regulator added that the investments could only be made via platforms that are compliant with the Financial Action Task Force (FATF), as well as anti-money laundering regulations.
The Swiss crypto-friendly market
Switzerland holds one of the friendliest crypto regulations around the world, one that allows local financial institutions to participate in the emerging digital assets market. In May, Cryptopolitan reported that UBS Group was seeking to offer high-profile clients the opportunity to invest in cryptocurrency.
With the inception of the first Swiss crypto fund, more of these investors can gain exposure to the value of digital currencies like Bitcoin without having to hold the coins themselves. This is a milestone for the Swiss cryptocurrency market, given that more capital can flow into the sector through the fund.
Many people are keen on seeing a Bitcoin exchange-traded fund approved in the United States. Countries like Canada already have one or more crypto funds, including ETFs.
