Swiss FINMA Approves First Retail Bitcoin ETF, Waives Diversification Rules

Switzerland's Financial Market Supervisory Authority said Tuesday it approved the country's first retail fund investing directly in Bitcoin, classifying it as an exchange-traded "other fund for alternative investments" with specific risk. FINMA waived applicable risk diversification rules, citing Bitcoin's long trading history and particularly high trading volume versus other cryptocurrencies. The regulator did not name the fund or its issuer and gave no launch date, saying only that other providers have submitted or announced Bitcoin ETF applications. FINMA previously cleared the Crypto Market Index Fund in September 2021, but sales were restricted to qualified investors and it held a basket of crypto assets rather than Bitcoin alone. Under FINMA guidance published Jan. 12, 2026, a Swiss custodian bank generally must hold a Swiss fund's Bitcoin, with third-party custodians at home or abroad requiring equivalent oversight and bankruptcy protection. Sellers must follow Swiss financial services conduct rules, including volatility warnings and suitability checks. FINMA said this offers more protection than buying crypto directly.