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Switzerland’s first cryptocurrency fund has been approved

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Switzerland’s first cryptocurrency fund has acquired approval. As local financial authorities give more regulatory permissions for crypto investment vehicles, cryptocurrency usage continues to gain traction in Switzerland.

The SIX Swiss Exchange’s Crypto Market Index 10 is usable to track the performance of the top ten cryptocurrencies.

Moreover, the Crypto Market Index Fund has been certified by the Swiss Financial Market Supervisory Body (FINMA) as the “first crypto fund according to Swiss law,” the authority stated on Wednesday.

Crypto Finance, a Swiss asset manager, established the fund

The fund was established by Swiss asset manager Crypto Finance and managed by PvB Pernet von Ballmoos AG. With custody provided by regulated custodian SEBA Bank AG.

Furthermore, 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.

Particularly, “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.

The newly approved fund is exclusive to eligible investors. As well, it invests largely in cryptocurrencies or digital assets. Which are “based on blockchain or distributed ledger technology,” according to FINMA.

SEBA Bank issued the first Swiss digital asset custody licence

In particular, Investors must 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 is recognisable as an institutional-grade custodian service by FINMA. Which has granted the firm a CISA licence in conjunction with the fund approval. In addition, in early September, the authorities approved SIX Swiss Exchange’s plans. In order to build a digital marketplace and central securities depository based on distributed ledger technology.

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