This archive report was first published on 29 September 2021.
On September 29, 2021, the Swiss Financial Market Supervisory Authority (FINMA) made history by approving the first regulated Swiss fund to invest primarily in crypto assets.
The 'Crypto Market Index Fund' will track the performance of the Crypto Market Index 10, administered by the SIX Swiss Exchange, which measures the performance of the largest and most liquid crypto assets and tokens.
According to FINMA, the fund will cover 'alternative investments' on established crypto platforms, involving particular risks. To mitigate these risks, investments will be made via established counterparties and platforms based in a member country of the Financial Action Task Force (FATF) and subject to corresponding anti-money laundering regulations.
The fund will also be subject to strict reporting requirements, ensuring transparency and accountability.
FINMA's approval of the Crypto Market Index Fund marks a significant shift in the country's approach to digital currencies, adopting a more flexible approach than many other states.
As Bernadette Leuzinger, CEO of Asset Management at Crypto Finance, stated, '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.'
The firm is based in Zug, a tech hub canton near Zurich, which has earned the nickname Crypto Valley for its welcoming environment for tech and crypto-friendly firms.
