Thailand SEC Approves First Spot Bitcoin ETF

In a landmark development for the cryptocurrency market, the Thailand Securities and Exchange Commission (SEC) has approved the country's first spot Bitcoin Exchange-Traded Fund (ETF). This historic move marks a significant step forward in the mainstream adoption of digital assets within Thailand, providing investors with a regulated and accessible way to gain exposure to Bitcoin. The approval of this ETF is expected to have wide-reaching implications for both the local and global crypto markets, signaling growing institutional confidence and regulatory support for Bitcoin and other cryptocurrencies.

ONEAM Leads the Charge with Bitcoin ETF

The Securities and Exchange Commission (SEC) has endorsed One Asset Management (ONEAM) as the first firm to launch a spot Bitcoin ETF in Thailand, targeting wealthy and institutional investors. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) will be available from May 31 to June 6, with an investment risk level of eight. This fund is designed to invest in 11 leading global funds to ensure liquidity and safety, with coin storage adhering to international standards and reviewed by regulatory agencies in the US and Hong Kong.

MFC Asset Management is also seeking SEC approval for a Bitcoin ETF aimed at similar investors. According to Pote Harinasuta, chief executive of ONEAM, "Digital assets are an alternative asset that have low correlation with other financial assets. They are suitable to help investors diversify investment risks." Internationally, Bitcoin ETFs are gaining recognition, with the US SEC and Hong Kong's Securities and Futures Commission recently allowing the establishment of ETFs investing in Bitcoin and Ethereum.

Regulatory Amendments and Investment Insights

Thailand's SEC had earlier announced amendments allowing asset management firms to launch private funds investing in U.S. spot Bitcoin ETFs, following the U.S. SEC's approval of Bitcoin ETF trading on January 11. This decision aligns with the global trend of increased investor confidence in Bitcoin ETFs. SEC secretary-general Pornanong Budsaratragoon emphasized the high-risk nature of these investments despite the growing demand among institutional investors.

Pote Harinasuta highlighted Bitcoin's potential for high returns, noting an average annual return of 124% over the past 11 years, contrasted with high volatility at 83%. He advised investors to limit Bitcoin exposure to 5% of their portfolio, aiming for a return of 8.90% per year. He stressed the security of investing through ETFs, where unitholders' data and coins are stored offline by custodians, offering protection against risks such as data loss or theft, which have plagued direct investments on various platforms.