Swiss FINMA approves first crypto fund

The Swiss Financial Market Supervisory Authority (FINMA) has approved its first crypto fund.

The ‘Crypto Market Index Fund’ – restricted to qualified investors – now falls under Swiss law as ‘other funds for alternative investments’.

Asset management firm Crypto Finance is running the fund in partnership with PvB Pernet von Ballmoos. SEBA Bank is the custodian.

An expert in the Swiss financial services industry, and the head of Switzerland & Middle East at Fireblocks, Richard Astle (main image) told Coin Rivet that “the Swiss ecosystem has flourished due to clear communication from the regulator for a number of years now”.

“Businesses pioneering new technologies can operate without uncertainty,” he said.

Astle  added that SEBA Bank, a pioneer in the financial industry in the region, was the first to receive a FINMA license for liquid crypto funds and is also a Fireblocks customer.

He claimed the lines between traditional finance and crypto finance are already blurred in Switzerland.

“It further highlights how crypto-asset businesses can operate with certainty here which supports the continued adoption of the asset class,” he said.

“Security can be referenced broadly in respect of Switzerland, as can stability. That’s evidenced by the increasing number of businesses setting up and/or migrating here.”

He stressed that the fully regulated fund opens up new distribution channels to investors.

“Inclusion into discretionary mandates within the private banks which make up the lion’s share of investment management in the country is, of course, now in scope,” he explained.

Astle added that Fireblocks enable institutions to escape closed-loop infrastructure and scale their digital asset business.

“When uncertainty is removed from the equation, our partners can confidently increase the scope of their business by adding new products and services,” he said.

“It’s our goal in Switzerland to complement the thriving ecosystem with our technology.”