Key Takeaways
- Thailand’s SEC is seeking comments from the public concerning legitimate spot crypto exchange-traded funds (ETFs).
- Bitcoin (BTC) and ethereum (ETH) funds will start the initial process, with altcoins to follow if funds meet criteria.
- The latest SEC press release from Thailand is more directed at retail investors than high-net-worth and institutional ones.
Thailand’s Securities Authority Seeks Public Comments
Thailand is looking to forward new policy on digital currency ETFs and on Aug. 24, Thailand’s SEC published an announcement noting the regulator is seeking comments. The securities supervisory authority detailed that a digital currency ETF needs to be operated by a licensed asset management firm.
Essentially, existing ETF rules, similar to what is already listed on the Stock Exchange of Thailand, apply to crypto funds. “A crypto ETF must be established and managed by an asset management company (AMC) and comply with the regulatory framework generally applicable to ETFs, the requirements governing investment in digital assets by MFs, and additional investor protection measures,” Thailand’s SEC notice says.
The commission detailed that bitcoin (BTC) and ethereum (ETH) funds will be the first to be eligible. If the SEC is pleased with that outcome going forward, altcoin funds could follow in the future. Initially, Thai regulators will not allow wrapped-style funds until later as well. The proposal discussed Thai-centric crypto funds and foreign ETFs as well, like Blackrock’s IBIT. The requirements are not easy, and asset managers must showcase all of their operational arrangements.
SET Rules and the Difference Between the Latest Announcement and the ONE Bitcoin ETF
In terms of custody, Thailand’s SEC seems to prefer domestic but foreign solutions that could qualify if “necessary and appropriate.” This makes sure the securities regulator can watch what is going on from a closer perspective. Moreover, “crypto ETFs must be listed and traded exclusively on the Stock Exchange of Thailand (SET),” the SEC’s announcement explains.
The press announcement is not Thailand’s first time dipping its toes into this arena. Back in June 2024, Thailand’s securities regulator approved the ONE Bitcoin ETF (ONE-BTCETFOF-UI). That product only allowed the wealthy and institutional investors to leverage the ONE Bitcoin ETF. Additionally, that specific fund is sort of a wrapper that does not hold actual bitcoin.
The latest announcement concerns legitimate spot bitcoin funds traded on SET and holding actual BTC under Thai financial laws. This opens the crypto ETF investment path to Thai retail.