Switzerland News: First-Ever Crypto Fund Approved
Switzerland’s financial regulator has approved a cryptocurrency investment fund offered by a subsidiary of the country's stock exchange. On Wednesday, the FINMA approved Switzerland's first ever crypto fund which will be called the Crypto Market Index Fund, categorised by FINMA as "other funds for alternative investments".
The new cryptocurrency fund mentioned earlier will track an unspecified index that comprises of “cryptocurrencies and crypto assets” based on market cap, which means it cannot include Ripple or Stellar due to their lack of decentralisation. As reported by local news agency Aargauer Zeitung, the fund is also currently limited to professional or qualified investors.
No Concerns for Investor Protection
The Financial Market Supervisory Authority (FINMA) stated publicly that it has approved the very first cryptocurrency fund. The regulator said in an official statement, "The FINMA has issued a binding order to Crypto Fund AG in connection with its initial approval of the fund domiciled in Switzerland for listing on the SIX Swiss Exchange. At the same time, it has notified the Zug-based asset manager to cease unauthorized promotional and advertising activities."
The Supervisory authority said that an initial assessment of cryptocurrency funds did not pose any concerns for investor protection but added that future financial market innovators should comply with the current regulations.