The Swiss exception. On October 20, FINMA gave the green light to the first Bitcoin ETF aimed at the general public. This Thursday, October 29, the SIX Swiss Exchange confirmed that the product will be accessible to foreign banks and brokers upon its listing, expected in November.
The key points of this article:
On October 20, FINMA approved the Bitcoin Fund ETF (BBIT), the first spot ETF open to Swiss individuals.
Listing will begin in November on the SIX Swiss Exchange, with no exact date yet.
Around 90 banks and brokers, both Swiss and foreign, will be able to trade the stock on the Zurich market.
Sales to the public remain confined to Switzerland, with Europe prohibiting traditional funds from investing in bitcoin.
An ETP and an ETF, what is the difference for the saver?
This green light concerns the Bitcoin Fund ETF (BBIT), managed by BIT Asset Management. FINMA revealed the terms of its authorization the same day. The fund obtains the right to deviate from the diversification rule and invest 100% in bitcoin.
To justify its decision, FINMA highlights the long history of bitcoin listing and its high volumes. A spokesperson for the regulator assures us that this approval does not automatically open the way to ether or solana ETFs. Other companies have filed similar files, without their number being specified.
In Zurich, most of the listed bitcoin products are ETPs, explains BIT Asset Management in its press release dated October 22. An ETP is a debt security: the buyer holds a claim on the issuer, backed by bitcoin held with a custodian.
If the issuer defaults, the investor in an ETP finds himself in the queue of creditors. BBIT is a regulated fund. Its bitcoins are kept off the balance sheet of the company that manages it, a legal protection of another order in the event of difficulty.
In other words, an ETP resembles an IOU denominated in bitcoin, when a share of the fund gives a right to very separate assets.
The market did not wait until 2026 to list bitcoin. SIX has been listing crypto products since November 2018, when Amun, now 21Shares, launched the world's first crypto ETP. BBIT remains the first ETF open directly to individuals in the country.
On the other hand, European rules close the door to this type of product. The diversification imposed on general public funds prohibits investing directly in bitcoin, according to a report from the European Systemic Risk Board. The Swiss exemption is therefore an exception.
The exact listing date has not been set, but the calendar points to November. SIX confirmed to CoinDesk that the security will be tradable by institutions and individuals upon admission.
Around 90 banks and brokers already participate in the Zurich market, both Swiss and foreign. Danielle Reischuk, head of ETF and ETP sales at SIX, specifies that an international broker can access the security directly, as an approved participant, or through an existing participant.
Being able to buy does not mean being able to resell to your customers. A foreign broker will have to comply with the rules of its clients' country. Currently, BBIT is only approved for sale to the public in Switzerland.
Even on the Swiss side, the purchase will not be immediate. The sales manager reminds that an individual will only see the title in their banking application once the technical integration has been completed by their establishment.
FINMA also supervised the distribution of the product. Without personalized advice, the buyer escapes the suitability test, but must receive a warning about the risks. Banks that advise or manage portfolios will need to verify their client’s financial situation, objectives and experience.
On the demand side, no one ventures a figure. Neither SIX nor BIT Asset Management have provided estimates. In the United States, hedge funds sold 68,000 BTC on bitcoin ETFs, before sovereign wealth funds took over.
