Switzerland’s first spot bitcoin ETF is about to get a much bigger audience. The Bitcoin Fund ETF (BBIT) from BIT Asset Management — the country’s first exchange-traded fund allowed to hold bitcoin directly and sell shares to retail investors — will be accessible to overseas banks and brokers when trading begins in November on the SIX Swiss Exchange, SIX told CoinDesk.
Bitcoin ETF concept (Credits: CoinDesk)
The Swiss Financial Market Supervisory Authority (FINMA) approved BBIT on October 20, granting a rare exemption from rules requiring investment funds to spread holdings across different assets. That exemption lets the fund invest entirely in bitcoin — something Swiss fund law would normally block for retail products.
Switzerland Bitcoin ETF: Why FINMA Waived the Diversification Rule
According to CoinDesk, a FINMA spokesperson said bitcoin’s long trading history of more than 15 years and its high trading volumes helped justify the exemption. The regulator confirmed that other companies are seeking approval for similar cryptocurrency funds — but stressed that approval does not automatically clear the way for ETFs holding other cryptocurrencies such as ether or solana.
Most bitcoin investment products already traded in Europe are structured as debt securities issued by financial companies, meaning investors hold a claim against the issuer rather than a share in a fund. BBIT is different: the fund will keep its bitcoin holdings separate from its manager’s assets, giving investors different legal protections if the manager runs into financial trouble. Classed under Swiss law as an “other fund for alternative investments” with a specific risk, the fund must hold its coins with a Swiss custodian bank under guidance FINMA published in January.
BBIT: Public Sales in Switzerland Only for Now
Public sales are approved only in Switzerland; availability elsewhere will depend on local regulations. Still, access for overseas banks and brokers through the SIX listing means the fund could soon draw significant institutional capital from abroad — a step analysts say could cement Switzerland’s position as a leading European hub for crypto innovation.
FINMA emphasised that investments in bitcoin — even through an approved ETF — remain highly risky, and the fund’s documents must disclose those risks clearly with suitability checks at the point of sale.
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Source: CoinDesk — read the full story there.
