[2021-09-29] Swiss markets watchdog approves first crypto assets fund

[Woodie]

Switzerland's financial markets supervisor said on Wednesday it had approved the country's first fund that invests primarily in crypto assets.

The Crypto Market Index Fund is restricted to qualified investors and categorised under "other funds for alternative investments" with particular risks, the Swiss Financial Market Supervisory Authority (FINMA) said in a statement.

Crypto assets are based on the blockchain or distributed ledger technology.

"In order to facilitate serious innovation, FINMA applies the existing provisions of financial market laws in a consistently technology-neutral way," it added, thus ensuring that new technologies are not used to circumvent existing rules.

Since crypto assets involve particular risks, FINMA said it had tied the approval to specific requirements, including that the fund may invest only in established assets with a sufficiently large trading volume.

Read more https://www.reuters.com/business/finance/swiss-markets-watchdog-approves-first-crypto-assets-fund-2021-09-29/

[leea-1334]

If I am not mistaken this is following Germany who did the same earlier this year,,, allowing a maximum of 5% of the fund to be put into assets. I remember the calculations was that if even 1% of that country's investments went into crypto it would be close to equalling the volumes on some exchanges already. Now imagine if all the European countries had even 0.5% into Bitcoin, what that would do to existing supply!

[aoluain]

Kind of interesting.
Its another avenue for traditional investors to get exposure to crypto markets.

Time will prove that more and more countries will allow various variations of this which
will increase the market cap at least of crypto.

Its also interesting how its only applicable to "qualified investors". Anyone just cannot
walk into a broker or fund provider with €100 of CHF equivalent, luckily the average
joe/jane doesnt need to be "qualified" to have and trade crypto.

[SFR10]

Now imagine if all the European countries had even 0.5% into Bitcoin, what that would do to existing supply!

If all of them do exactly the same as what the above crypto index fund in question does, then the answer is "nothing"! From what I've understood, it only tracks or rather mirrors the performances, as opposed to actually buying them:

• The fund tracks the performance of the 10 largest cryptocurrencies from SIX Swiss Exchange’s Crypto Market Index 10.

Its also interesting how its only applicable to "qualified investors".

From what I've seen in the past few years, that's been the norm... First, they allow the ones that are at the top of the chain to invest, then they'll open it to other tiers.

• Qualified investors, such as Swiss wealth management banks, asset managers, pension funds, and other professional investors, who collectively manage several trillion CHF in assets, have been waiting for this kind of regulated fund.

[leea-1334]

Now imagine if all the European countries had even 0.5% into Bitcoin, what that would do to existing supply!

If all of them do exactly the same as what the above crypto index fund in question does, then the answer is "nothing"! From what I've understood, it only tracks or rather mirrors the performances, as opposed to actually buying them:

Ah but this is true for a crypto index fund is just a stock that mirrors the price and not actually buying physical crypto. If I understand correctly a crypto assets fund is different because it means keeping the actual assets partially in crypto, which is what I understood the Germany law to allow. As in, like what Microstrategy is doing, keeping their profits not in USD bank accounts but in Bitcoin instead. But if what you said is right then of course, it does not do anything except increase speculation.

[hello_good_sir]

Only now?

Other countries have had these for ages, including the U.S.

The Swiss authorities seem to be really be falling behind on the crypto revolution. However from an investor point of view, I wouldn't even be interested in such a fund given the fact that your crypto position will be heavily regulated and there is now a central point of failure.