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Preheat the oven to 350°F.
Place chard leaves in a saucepan with the 1 cup water and cook over medium heat until leaves are just tender, 3 to 4 minutes.
Drain, reserving 1/4 cup of the cooking liquid. Set chard aside.
In the same saucepan, heat olive oil and butter over medium heat.
When butter has melted, whisk in the flour until blended.
Whisk constantly for 1 minute.
Slowly whisk in the milk and reserved cooking liquid.
Continue cooking and stirring until the sauce thickens, 3 to 5 minutes.
Season with salt and pepper and stir in half of the grated cheese.
Stir in the cooked chard and transfer to a buttered 9x9-inch baking dish.
Sprinkle with remaining cheese and breadcrumbs.
Bake until hot and bubbling, about 20 minutes. Serve immediately.