The Swiss Financial Market Supervisory Authority (FINMA) has approved the first exchange-traded fund that directly invests in Bitcoin and targets retail investors. The regulator granted the fund an exemption from certain risk diversification rules, citing Bitcoin's longer trading history and higher trading volume compared to other cryptocurrencies. FINMA requires the issuing institution to implement measures reducing operational and asset custody risks, and to clearly disclose Bitcoin price volatility and potential loss risks in fund documents. When sold, the product must comply with Switzerland's Financial Services Act (FinSA) conduct rules, including investment appropriateness and suitability assessments. Other fund providers have submitted or announced plans to submit similar Bitcoin ETF applications.