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Switzerland approves first cryptocurrency fund

Updated: Jul 25, 2024
Published: Sep 29, 2021
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The Swiss Financial Market Supervisory Authority (FINMA) has approved the Crypto Market Index Fund as the first crypto fund under Swiss law, the authority officially announced on September 29.

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Fund will track the performance of Crypto Market Index 10

The fund is launched by Swiss asset manager Crypto Finance and managed by PvB Pernet von Ballmoos AG. Regulated custodian bank SEBA Bank AG provides custody. FINMA noted that the newly approved fund is limited to qualified investors and invests primarily in cryptocurrencies or digital assets "based on the blockchain or distributed ledger technology."

The regulator said the Crypto Market Index Fund may only invest in leading cryptocurrencies with "sufficiently large trading volumes." According to Crypto Finance, the fund will track the performance of the Crypto Market Index 10, a product managed by SIX Swiss Exchange.

FINMA  approved SEBA Bank AG as a custodian bank for institutional clients

In addition, investments must be made through established counterparties and platforms that are domiciled in a member country of the Financial Action Task Force and subject to the relevant anti-money laundering regulations, FINMA said.

FINMA also approved SEBA Bank AG as a custodian bank for institutional clients by granting the firm a CISA license. Previously, in September, the authority officially approved SIX Swiss Exchange to establish a digital marketplace and central securities depository based on distributed ledger technology.

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