SWITZERLAND’S REGULATOR APPROVED ITS FIRST BITCOIN ETF FOR EVERYDAY INVESTORS — IT HOLDS REAL BITCOIN — FINMA’S FIRST CONDITION IS ABOUT CUSTODY, AND IT DIDN’T SAY WHO HOLDS THE KEYS

Switzerland’s financial regulator, FINMA, said on October 20 that it “has, for the first time, approved an exchange-traded retail fund that invests directly in Bitcoin.” Regular investors can buy it, not just qualified ones. FINMA didn’t name the fund, the company behind it or who holds the coins.

It files the fund as an “other fund for alternative investments” with a specific risk under Swiss law, and it set two conditions. Supervised firms “must take measures to mitigate operational risks and custody risks,” and buyers get “clear risk warnings, including warnings about volatility and the risk of losing money.”

The step up is access. In 2021, Cointelegraph notes, FINMA approved a crypto fund for qualified investors only. This one is for everyone, and it holds bitcoin itself.

A fund that holds bitcoin is still a fund. The buyer owns a unit and a custodian holds the keys, which is why FINMA’s first condition is about custody. It’s a better door for Swiss savers than no door. It isn’t the same as holding your own coins. At the time of this writing, bitcoin was $83,028.