Switzerland has its first regulated crypto fund

The Crypto Market Index Fund is a passive fund for institutional investors

Swiss flag against a hand holding several $100 bills                                 
Money in a man’s hand against the background of the flag of Switzerland – Photo: Shutterstock

Swiss financial regulator, the Financial Market Supervisory Authority (FINMA) has approved Switzerland’s first ever crypto asset fund.

The Crypto Market Index Fund has been launched by Swiss asset manager Crypto Finance and administered by investment management firm PvB Pernet von Ballmoos AG with custody by Swiss SEBA Bank.

It is a passive fund that tracks the Crypto Market Index 10, which is administered by the SIX Swiss Exchange. According to Crypto Finance: “The objective of the Crypto Market Index 10 is to reliably measure the performance of the largest, liquid crypto assets and tokens and to provide an investable benchmark for this asset class.”

Only for institutional investors

The fund is restricted to institutional investors, such as Swiss wealth management banks, asset managers, pension funds and other professional investors.  

Crypto Finance said its mission is to “enable crypto asset management of a quality and security comparable with investment products in traditional markets”.

FINMA did state however that the fund must “only invest in established crypto assets with a sufficiently large trading volume”.

Next stage in bank’s plans

Guido Buehler, CEO of SEBA Bank, said: “Two years ago SEBA Bank received a Swiss banking and securities dealer licence. With approval now granted according to the CISA agreement, SEBA Bank has passed another important stage in its development plan and lives up to its pioneering role.

“Asset managers can now offer strategies based on crypto assets to a broader audience by using Swiss-based mutual fund structures with SEBA Bank as an approved custodian. We are excited to enable liquid investment funds to investors using crypto assets as the underlying investment universe. This is a further step in the evolution of digital assets investments.”

Bernadette Leuzinger, CEO at Crypto Finance, said: “Crypto Finance is pleased to launch the first Swiss crypto fund, supervised by FINMA and launched with strong Swiss partners PvB and SEBA Bank. The investment fund enables clients of innovative wealth and asset management firms to participate in this upcoming asset class and to further diversify their portfolio in a secure and regulated way.”

Further reading: Wells Fargo and JP Morgan file for bitcoin funds

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