The Swiss Financial Market Supervisory Authority (FINMA) approved the first crypto fund in accordance with the country’s regulations.
The Crypto Market Index Fund primarily invests in crypto assets and is available to qualified investors.
The regulator classified the product as a “fund for alternative investments” with special risks.
The regulator applied existing rules to the fund and tied the approval to specific requirements.
“For example, the fund may invest only in established crypto assets with sufficiently high liquidity. In addition, investments must be conducted through recognised counterparties and platforms that are located in a FATF member country and fall under the applicable rules,” the press release said.
Crypto Market Index Fund was launched by Crypto Finance in partnership with asset manager PvB Pernet von Ballmoos. The custodian is the licensed crypto bank SEBA.
We are excited to announce the launch of the first Swiss crypto asset fund.
By partnering with PvB Pernet von Ballmoos AG and @WeAreSEBA, Crypto Finance (Asset Management) AG can apply their proven experience in digital assets as manager of the fund:https://t.co/m34CI4XnKo— Crypto Finance (@CryptoFinanceAG) September 29, 2021
The investment product tracks the performance of the Crypto Market Index 10 from the SIX Swiss Exchange, the largest stock exchange in Switzerland. The index is based on the quotes of the most liquid cryptocurrencies.
In February, Crypto Finance’s subsidiary received a broker-dealer license from FINMA. This allowed the firm to open trading of digital assets for institutional investors.