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Switzerland approves for the first time a bitcoin and cryptocurrency investment fund

The fund is for qualified investors only though

30.Sep.21 2:03 PM
By Shawn Highstraw
Photo Pinterest


Switzerland approves for the first time a bitcoin and cryptocurrency investment fund
The FINMA says that the new fund, the Crypto Market Index Fund, is only available to qualified investors and falls under the category ‘other funds and alternative investment funds’, and therefore involves certain risks for customers. By certain risks, the FINMA means higher risks.
Sufficient volume

With regard to those potential risks, FINMA explained that approval is justified after proper examination of specific requirements. These include the addition of certain cryptocurrencies into the fund, which coins should in any case have sufficient trading volume. Think of crypto's with a proven history such as bitcoin, ethereum and so on.

'To enable serious innovation, FINMA applies the existing provisions of the financial market laws in a consistently technology-neutral way,’ says the regulator's statement in Reuters' article.

In addition, the fund may only be invested through platforms under the jurisdiction of the Financial Action Task Force (FATF). Of course, all these platforms must comply with anti-money laundering regulations.
Switzerland ahead of rest of Europe

The Swiss regulator has already approved several similar cryptocurrency-oriented products in recent years. Apart from that, companies such as 21Shares and CoinShares have launched multiple exchange-traded products on the SIX Exchange.

You can see from everything that Switzerland wants to attract the crypto industry, since last year the locals in the Swiss canton of Zug are allowed to pay their taxes in Bitcoin and Ethereum. That sounds nice, but if you had used your bitcoin last year to pay taxes, you would have missed the bullrun.

In addition, the former Libra Foundation of Facebook was also based in Switzerland. Since February, one of the oldest Swiss banks has been allowed to offer trading in bitcoin, ethereum, bitcoin cash and tezos. Evrard Bordier, Managing partner at Bordier, said the bank saw an increasing demand from its customers to invest in cryptocurrencies and diversify their portfolios.

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