Thailand Approves First Spot Bitcoin ETF for Wealthy & Institutional Investors

TLDR

• The Thai Securities and Exchange Commission (SEC) has approved the country’s first spot Bitcoin exchange-traded fund (ETF), to be launched by One Asset Management (ONEAM).
• The ONE Bitcoin ETF Fund will be limited to wealthy and institutional investors and is scheduled to be distributed between May 31 and June 6.
• ONEAM will invest the fund in 11 major global Bitcoin funds to ensure liquidity and security, offering exposure to Bitcoin within a regulated framework.
• MFC Asset Management, another Thai firm, is still awaiting regulatory approval for its planned Bitcoin ETF, which will also be restricted to qualified investors.
• Thailand follows other countries, such as the US, Hong Kong, Australia, and the UK, in approving regulated Bitcoin investment vehicles, providing easy exposure to Bitcoin’s price movements without direct handling of the cryptocurrency.

The Thai Securities and Exchange Commission (SEC) has given the green light to the country’s first spot Bitcoin exchange-traded fund (ETF).

The approval, granted to One Asset Management (ONEAM), marks Thailand’s entry into the growing list of nations that support regulated Bitcoin investment vehicles.

The ONE Bitcoin ETF Fund, which is scheduled to be distributed between May 31 and June 6, will be limited to wealthy and institutional investors.

This decision follows the Thai SEC’s amendments to local guidelines in April, permitting restricted Bitcoin ETFs targeting professional investors. The move is expected to pave the way for broader mainstream adoption of Bitcoin in Thailand once public offerings become available.

ONEAM plans to invest the fund in 11 major global Bitcoin funds to ensure robust liquidity and security.

By doing so, the company aims to offer exposure to Bitcoin within a regulated framework, addressing risks such as theft that are associated with direct cryptocurrency ownership.

Pote Harinasuta, chief executive of ONEAM, emphasized the potential of digital assets as an alternative investment, stating,

“Digital assets are an alternative asset that have low correlation with other financial assets. They are suitable to help investors diversify investment risks.”

While ONEAM has secured the SEC’s approval, another Thai firm, MFC Asset Management, is still awaiting regulatory clearance for its own planned Bitcoin ETF product.

Both offerings will be restricted to qualified investors, in line with the Thai SEC’s guidelines.

Thailand’s approval of a spot Bitcoin ETF follows similar moves by other countries around the world. In January, the US SEC approved several Bitcoin ETFs, which sparked a surge in interest from investors.

Since then, jurisdictions such as Hong Kong, Australia, and the UK have also launched spot Bitcoin ETFs or comparable products.

The emergence of these regulated investment vehicles provides an easy and secure way for professional investors and institutions to gain exposure to Bitcoin’s price movements without the need to handle the cryptocurrency directly.

By offering a regulated avenue for Bitcoin investment, these ETFs are expected to attract more institutional capital and foster broader mainstream adoption of cryptocurrencies.

The Thai SEC’s decision to approve a spot Bitcoin ETF also reflects the growing demand from local institutions to add Bitcoin allocations to their portfolios.

As the cryptocurrency market continues to mature and gain recognition from regulators worldwide, the approval of such investment products is seen as a crucial step towards legitimizing Bitcoin as an asset class.

However, the Thai authorities have also taken steps to balance the promotion of the crypto ecosystem with fraud prevention measures.

The SEC has been directed to compile a list of unauthorized cryptocurrency platforms, which will be blocked following court approval.

The regulator has acknowledged the potential impact on users and announced a grace period to allow them to manage and withdraw their assets from these unauthorized services.

Thailand has previously adopted crypto-friendly policies, such as exempting crypto trading gains from the 7% value-added tax and permitting local investment in U.S. spot Bitcoin ETFs. However, the country has also maintained strict controls, requiring crypto custodians to have contingency plans in place.

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