Switzerland approves first cryptocurrency fund

As local financial authorities grant more regulatory approvals for crypto investment instruments, the adoption of cryptocurrencies in Switzerland continues to gain momentum.

The Swiss Financial Market Supervisory Authority (FINMA) has approved the crypto market index fund as “the first crypto fund under Swiss law”, which officially approved Announce September 29.

The fund is roll out It is managed by the Swiss asset management company Crypto Finance, managed by the investment management company PvB Pernet von Ballmoos AG, and managed by the regulated custodian SEBA Bank AG.

FINMA pointed out that the newly approved funds are limited to qualified investors, mainly investing in encrypted currencies or digital assets “based on blockchain or distributed ledger technology.”

Regulators have stated that crypto market index funds may only invest in leading cryptocurrencies with “sufficient trading volume.” According to Crypto Finance, the fund will track the performance of Crypto Market Index 10, a product managed by six Swiss exchanges.

“The goal of Crypto Market Index 10 is to reliably measure the performance of the largest and most liquid crypto assets and tokens, and to provide an investable benchmark for this asset class,” Crypto Finance noted.

related: SEBA Bank awarded Switzerland’s first digital asset custody license

FINMA added that it will require investors to invest only through established counterparties that are members of the Financial Action Task Force and are subject to corresponding anti-money laundering regulations.

While obtaining fund approval, FINMA also approved SEBA Bank AG as an institution-level custody service by granting the company a CISA license.Previously, the authorities officially Allow six Swiss exchanges to start The digital market and central securities depository based on distributed ledger technology were established in early September.