Switzerland clears its first bitcoin ETF for everyday investors, waiving its diversification rule for a fund that holds only bitcoin

Swiss savers are getting their first bitcoin fund. FINMA, Switzerland's financial regulator, said on October 20 that it has approved an exchange-traded retail fund that invests directly in bitcoin, the first of its kind in the country. It did not say which fund or provider, and a spokesperson told The Block that FINMA does not give out institution-specific information.

Bitcoin has traded in Zurich for years, but not like this. The SIX Swiss Exchange has long listed bitcoin exchange-traded products, which are debt securities rather than investment funds, The Block noted. The new ETF is a fund, so FINMA had to bend a rule: it granted an exemption from the usual risk-diversification requirements, citing bitcoin's long trading history and particularly high trading volume compared with other cryptocurrencies. Under Swiss law the fund is classed as an "other fund for alternative investments" with a specific risk.

The approval comes with conditions. Institutions must manage custody and operational risks under guidance FINMA published on January 12, 2026, and point-of-sale rules under the Financial Services Act apply, including clear warnings and suitability checks. The coins generally must sit with a Swiss custodian bank, Decrypt reported. "FINMA emphasises that investments in Bitcoin – even through an approved ETF – remain highly risky," the regulator said.

More may follow. FINMA said other fund providers have submitted or announced applications for bitcoin ETFs.