The newly approved fund is limited to eligible investors and invests largely in cryptocurrencies or digital assets, also the fund tracks the performance of the 10 largest cryptocurrencies from SIX Swiss Exchange’s Market Index.
As local financial authorities give more regulatory permissions for crypto investment vehicles, cryptocurrency usage continues to gain traction in Switzerland.
The Crypto Market Index Fund has been certified by the Swiss Financial Market Supervisory Authority (FINMA) as the “first crypto fund according to Swiss law,” the authority said on September 29.
The fund is managed by investment management firm PvB Pernet von Ballmoos AG, with custody provided by regulated custodian SEBA Bank AG.
It was launched by Swiss asset manager Crypto Finance and is administered by investment management firm PvB Pernet von Ballmoos AG.
The newly approved fund is limited to eligible investors and invests largely in cryptocurrencies or digital assets that are “based on blockchain or distributed ledger technology,” according to FINMA.
The Crypto Market Index Fund can only invest in prominent cryptocurrencies with a “sufficiently significant trading volume,” according to the regulator. According to Crypto Finance, the fund will monitor the performance of the SIX Swiss Exchange’s Crypto Market Index 10, a product.
“The goal of the Crypto Market Index 10 is to offer an investable benchmark for this asset class by reliably measuring the performance of the largest, liquid crypto assets and tokens,” according to Crypto Finance.
Investors would be required to invest only through established counterparties based in a Financial Action Task Force member country and subject to applicable anti-money laundering legislation, according to FINMA.
SEBA Bank AG has been recognized as an institutional-grade custodian service by FINMA, which has granted the firm a CISA license in conjunction with the fund approval.
In early September, the authorities approved SIX Swiss Exchange’s plans to build a digital marketplace and central securities depository based on distributed ledger technology.
