The supervisor of financial markets in Switzerland said Wednesday that the country had approved its first crypto-focused fund.
The Crypto Market Index Fund is only available to qualified investors. It falls under the “other funds for alternate investments” category with particular risks, according to the Swiss Financial Market Supervisor Authority (FINMA).
Blockchain or distributed ledger technology is the basis of crypto assets.
“In order to foster serious innovation, FINMA applies existing provisions of financial markets laws in a consistent technology-neutral manner,” it said. This ensures that existing rules are not evaded by using new technologies.
FINMA stated that crypto assets are highly risky and had made it clear that they would only approve funds that invest in assets with sufficient trading volumes.
FINMA stated that investments must be made through established counterparties or platforms that are based within a member country.