Switzerland's First Bitcoin ETF Seen as Good News for European Wealth Clients, Fund Selectors — Market Talk
The launch of the first Swiss-regulated bitcoin ETF this week is better suited to meet the needs of wealth clients and fund selectors than the traditional ETP structure, says Sygnum Bank. Exchange-traded products for bitcoin have existed for years but are typically debt instruments, so investors hold a claim on the issuer and don't physically own the cryptocurrency. A fund under the Swiss collective-investment law ring-fences the asset, meaning bitcoin is owned directly by the investor, which better meets institutional investor requirements, Sygnum Chief Investment Officer Fabian Dori says. "There is now a real choice of structure between direct tokens, an ETP, or a fund." ([email protected])