Swiss regulator FINMA approves first retail Bitcoin ETF, waives diversification rules

J.P. Morgan Asset Management projected a 10% annual return for Bitcoin over 10-15 years, topping its forecasts for U.S. large-cap stocks, gold, and a 60/40 portfolio. The report noted Bitcoin's high volatility at 55%, which reduces its compounded returns. JPMorgan did not include Bitcoin in its main asset models due to its volatility and unstable correlations. Bitwise's CIO welcomed the forecast but argued the volatility assumption was too high.

Swiss regulator FINMA approved the country's first bitcoin ETF for retail investors, citing growing interest in crypto. The ETF will allow investors to gain exposure to bitcoin in a regulated manner. FINMA noted the high risk involved but granted an exemption from risk diversification rules due to bitcoin's trading history and volume. The asset manager or bank behind the product was not disclosed.

Fidelity reports that Bitcoin treasury companies raised funds via perpetual preferred stocks, purchasing 135,979 BTC (0.5% of total supply) in over a year. These stocks, offering steady dividends, attract fixed-income investors, with $7B raised in 2026 alone. Fidelity sees this as a demand driver for Bitcoin, tapping a $150T market, though risks include dividend obligations during Bitcoin downturns.

Fidelity Digital Assets reports that perpetual preferred stock has funded purchases of 135,979 Bitcoin, representing over 0.5% of its maximum supply. The strategy involves companies issuing preferred shares to buy Bitcoin, betting on its limited supply. Between March and May, preferred issuance financed over 95,000 BTC, raising over $7 billion. Fidelity notes risks for preferred shareholders, including inflation and market interest rate impacts.

Switzerland's FINMA approved its first retail Bitcoin ETF, waiving risk diversification rules due to Bitcoin's trading history and volume. The fund will trade like a stock, with custodian banks required to hold Bitcoin. FINMA also noted other Bitcoin ETF applications are pending. U.S. spot Bitcoin ETFs saw outflows in October, except for BlackRock's IBIT.

U.S. spot Bitcoin ETFs saw $526.7M inflows on Monday, led by BlackRock's IBIT with $665.2M. This follows two weeks of outflows totaling $910M. Bitcoin hovered around $82,000, near the estimated cost basis of ETF holders. Other crypto funds, like Ethereum and Solana ETFs, experienced outflows. Oil prices and inflation data also impacted market sentiment.