The Swiss Financial Market Supervisory Authority (FINMA) reportedly granted regulatory greenlight to the Crypto Market Index Fund, to operate as the “first crypto fund according to Swiss law”. 

Specifically, this first Swiss-based, legally recognized crypto fund will reportedly be a sign showing that cryptocurrency adoption is taking significant strides in the nation, with financial regulatory bodies in the region approving increasing go-aheads to crypto investment instruments.

The fund was reportedly introduced by Swiss asset manager Crypto Finance, with investment management entity PvB Pernet von Ballmoos AG handling the administration work, and regulated custodian SEBA Bank AG taking care of custody duties. 

FINMA further revealed that the freshly authorized fund will be accessible to qualified investors strictly, making investments mainly in crypto or digital assets “based on the blockchain or distributed ledger technology.”

The regulator further claimed that the Crypto Market Index Fund is only authorized to make investments in top-tier crypto coins with a “sufficiently large trading volume.”. Per Crypto Finance, the fund will take care of the tracking for the Crypto Market Index 10 – a solution administered by the SIX Swiss Exchange.

“The objective of the Crypto Market Index 10 is to reliably measure the performance of the largest, liquid crypto assets and tokens and to provide an investable benchmark for this asset class,” Crypto Finance additionally remarked regarding the development. 

FINMA also shared its intention of making it mandatory for investors to make investments exclusively via established counterparties, headquartered in a member nation of the Financial Action Task Force, and are in compliance with corresponding Anti-Money Laundering regulations.