Approval of first Swiss crypto fund

For the first time, FINMA has approved a Swiss fund that invests primarily in cryptoassets, that is to say in assets based on the blockchain or distributed ledger technology. The fund concerned goes by the name of the “Crypto Market Index Fund”, an investment fund according to Swiss law belonging to the category "other funds for alternative investments" with particular risks. Distribution of this fund is restricted to qualified investors. 

In order to facilitate serious innovation, FINMA applies the existing provisions of financial market laws in a consistently technology-neutral way, i.e. in keeping with the “same risks, same rules” principle. In doing so, it makes sure that new technologies are not being used to circumvent the existing rules and that the protective goals of financial market legislation are preserved. Since cryptoassets involve particular risks, FINMA also tied the approval to specific requirements in the present case. For instance, the fund may only invest in established cryptoassets with a sufficiently large trading volume. Furthermore, the investments must be made through established counterparties and platforms that are based in a member country of the Financial Action Task Force (FATF) and are subject to corresponding anti-money laundering regulations. Finally, there are specific requirements with regard to risk management and reporting for the institutions involved in the management and custody. 

Bernadette Leuzinger, CEO of Asset Management at Crypto Finance, stated, “Crypto Finance is pleased to launch the first Swiss crypto fund, supervised by FINMA and launched with strong Swiss partners PvB and SEBA Bank. The investment fund enables clients of innovative wealth and asset management firms to participate in this upcoming asset class and to further diversify their portfolio in a secure and regulated way.”

Two firsts for Swiss wealth management
This first and only Swiss crypto asset fund managed by Crypto Finance is a result of a close cooperation for the custody provided by the Swiss crypto bank, SEBA Bank. “Two years ago SEBA Bank received a Swiss banking and securities dealer licence. With approval now granted according to the CISA agreement, SEBA Bank has passed another important stage in its development plan, and lives up to its pioneering role. Asset managers can now offer strategies based on crypto assets to a broader audience by using Swiss-based mutual fund structures with SEBA Bank as an approved custodian. We are excited to enable liquid investment funds to investors using crypto assets as the underlying investment universe. This is a further step in the evolution of digital assets investments,” says Guido Buehler, CEO of SEBA Bank.

(Press release / SK)