Switzerland’s first spot ETF to hold Bitcoin directly is expected to begin trading in November, but foreign brokerages’ access to the exchange alone will not be enough to offer the product to clients abroad.
SIX Swiss Exchange told CoinDesk that trading in the Bitcoin Fund ETF (BBIT) is expected to begin in November. The exact trading date has not yet been set; the fund will give investors in Switzerland the opportunity to invest in Bitcoin without buying and storing it themselves.
The Swiss Financial Market Supervisory Authority (FINMA) approved BBIT on October 20. The decision granted an exception to the rule requiring funds to diversify their investments across different assets, clearing the way for the fund to hold all of its assets in Bitcoin. FINMA cited Bitcoin’s long trading history and high trading volume among the reasons for its decision.
Foreign brokerages will be able to access the exchange
SIX official Danielle Reischuk said that around 90 banks and brokerages from Switzerland and abroad are exchange trading participants. International institutions will be able to access SIX either directly as approved participants or through an existing participant.
However, access to the exchange does not mean BBIT can be sold to clients in every country. Approval to offer the fund to the public is valid only in Switzerland; sales in other countries are subject to the rules where the clients are located. Investors in Switzerland will also be able to buy the fund through their banks or brokerages only if those institutions support the product and complete the necessary technical preparations.
BBIT’s fund structure sets it apart from other Bitcoin products
BIT Asset Management said that BBIT’s Bitcoin holdings will be kept separate from the management company’s assets. According to the company, most Bitcoin investment products traded in Europe take the form of debt instruments issued by financial companies. As a regulated investment fund, BBIT has a different legal structure from these products.
FINMA’s decision does not provide automatic approval for funds holding ether or solana. The authority confirmed that other companies have also applied for similar crypto funds or announced plans to launch them.
Investors who buy fund shares without receiving investment advice do not need to undergo an assessment of suitability based on their financial situation, but they must be warned about the risks. When banks provide investment advice or manage a client’s portfolio, they must assess whether the investment is consistent with the client’s financial situation, objectives, and experience.
Not investment advice.