U.S. Bitcoin Funds Draw $524.8 Million as Switzerland Approves Retail Fund
Key Facts
U.S. spot bitcoin funds recorded net inflows of $524.8 million in the 21 October 2026 session, according to Farside Investors data, coinciding with Swiss approval of a fund allowing retail investors to invest directly in the cryptocurrency. IBIT led U.S. inflows with $235.0 million during the session. FBTC followed with inflows of $212.7 million, with the two funds leading inflows into these products. In the cryptocurrency market, bitcoin traded at $84,078.1 on the same day, up 1.28% on the day, according to Investing.com historical data. In Switzerland, the Swiss Financial Market Supervisory Authority approved the first exchange-traded fund available to retail investors that invests directly in bitcoin. The approval opens investment through this type of fund to retail investors, after distribution of the cryptoasset fund previously authorised by the regulator under Swiss law had been restricted to qualified investors.
Bit Asset Management assigned the ticker BBIT to the new fund, whose investment structure is based on holding the cryptocurrency itself. The company said in its announcement that the fund "holds bitcoin directly rather than futures or derivatives". It added that the fund's assets are segregated from those of the fund management company and protected for investors. This structure differs from most bitcoin products listed in Europe, which the company described as exchange-traded products representing debt instruments that carry issuer risk. On the regulatory front, the Swiss authority classifies the fund as an "other fund for alternative investments" with special risks under Swiss law. It granted the fund an exemption from applicable risk diversification rules, citing bitcoin's long trading history and high trading volumes compared with other cryptocurrencies. The exemption allows the fund to maintain direct exposure to bitcoin within the regulatory framework approved by the authority.
The Swiss authority stressed that investing in bitcoin through a fund it has approved remains "high risk". It warned that cryptocurrency volatility could cause invested capital to lose a substantial part of its value. Alongside price risks, the authority's guidance identifies operational risks associated with the custody of cryptoassets. These risks include cyberattacks that could target custody operations. They also include inadequate protection of private keys, which the authority explicitly listed among the operational risks of holding such assets.
The Swiss move follows U.S. approval of the listing and trading of shares in spot bitcoin products on 10 January 2024, according to a statement from the U.S. Securities and Exchange Commission. The U.S. regulator said at the time that it had "approved the listing and trading of shares of a number of spot bitcoin exchange-traded products". In Switzerland, the regulator said other fund providers had also submitted applications for bitcoin exchange-traded funds. It added that providers had announced plans to submit similar applications, alongside those already filed. For the fund that secured approval, Bit Asset Management expects trading on the SIX Swiss Exchange to begin in November.