TL;DR
- Thailand will allow local asset managers to launch Bitcoin and Ether ETFs on its stock exchange starting October 16.
- The funds must maintain at least 80% of their net asset value in exposure to a single cryptocurrency and use regulated custodians.
- The new rules will also allow mutual funds and private funds to invest in Thai crypto ETFs, subject to existing investment limits.
The Securities and Exchange Commission (SEC) of Thailand approved new regulations allowing asset managers to launch Bitcoin and Ether exchange-traded funds (ETFs) on the country’s stock market. The new rules will take effect on October 16.
The products must be listed on the Stock Exchange of Thailand and track the performance of a single cryptocurrency. Initially, only Bitcoin (BTC) and Ether (ETH) will be eligible. Each fund must maintain exposure to its underlying asset equivalent to at least 80% of its net asset value.
Thailand Introduces Custody and Investor Protection Requirements
Investors must confirm that they understand the risks before purchasing shares in these ETFs. The regulations also prohibit brokers from lending money to clients to purchase cryptocurrencies.
The funds’ digital assets must remain in the custody of entities supervised by Thailand’s SEC.
Asset managers will be able to outsource their cryptocurrency investments to firms licensed to manage digital asset funds. Regulated custodians and other qualified entities will also be able to register as supervisors of these ETFs.
Until now, Thailand allowed only institutional investors and high-net-worth individuals to access foreign cryptocurrency ETFs. The new regulations will provide an alternative within the domestic financial market.
Traditional Funds Will Also Be Allowed to Invest in Crypto ETFs
The SEC amended its rules to allow mutual funds and private funds to invest in cryptocurrency ETFs listed in Thailand, provided they comply with existing investment limits.
During the initial phase, the regulator will not authorize instruments that give retail investors indirect access to foreign crypto ETFs, such as depositary receipts.
The new regulations expand regulated investment options for Bitcoin and Ether after the SEC announced plans in 2025 to include more cryptocurrencies in the ETF market.
According to data cited by World, approximately 20% of Thailand’s population owns cryptocurrencies, compared with 13% in the United States and around 19.4% in Nigeria, the Philippines, and South Africa.
