Thailand's Bitcoin and Ether ETF rules take effect today
From Oct. 16, Thai asset managers may list passive Bitcoin or Ether ETFs on the Stock Exchange of Thailand, with local custody, risk checks and no margin loans.
CryptoGroup Newsroom · · 3 min read
On this page
Thailand's rulebook for exchange-traded funds that hold Bitcoin or Ether comes into force on Friday, Oct. 16, giving local asset managers a regulated way to bring crypto exposure onto the Stock Exchange of Thailand (SET). The country's Securities and Exchange Commission (SEC) issued the 11 notifications behind the framework on Oct. 8 after consultations that ran through August and September, Cointelegraph and the regulator's own statement show.
The main rules
- Two assets to start: only BTC and ETH are eligible for now. The SEC says it will judge future additions on liquidity, market acceptance, network security and investor protection.
- Single-asset, passive funds: each ETF must track one coin and keep average net exposure of at least 80% of net asset value to it over every accounting year.
- Local custody: the coins must sit with digital-asset custodians supervised by the Thai SEC.
- One venue: the funds can list and trade only on the SET.
- Investor checks: buyers must receive product information and confirm they understand the risks before their first trade; brokers may not offer margin loans for these ETFs.
Asset managers may outsource the crypto side of the job only to licensed digital-asset fund managers, and qualified crypto firms can act as fund supervisors.
Who can buy what
Thai mutual funds and private funds may now invest in locally set up crypto ETFs, within their existing limits. Until now they could only use foreign crypto ETFs. At the same time, the SEC is not yet allowing depositary receipts linked to foreign crypto ETFs, and brokers still cannot arrange overseas crypto ETF purchases for anyone outside the institutional and ultra-high-net-worth categories.
Expectations
CoinShares research head James Butterfill told Cointelegraph he expects a modest start, with tens of millions of dollars across the first products a more realistic figure than billions. For how ETFs differ from holding coins yourself, see our guide Bitcoin ETF vs buying bitcoin, and for the scale of the US market, our report on BlackRock's crypto ETF assets in Q3.
Frequently asked questions
Can Thai investors buy a Bitcoin ETF from today?
The rules allow such funds from Oct. 16, but an asset manager still has to set up and list a product on the Stock Exchange of Thailand before anyone can trade it.
Which coins are allowed?
Only Bitcoin and Ether in the first phase. The SEC says it may add other assets later based on liquidity, market acceptance and network security.
Can retail investors buy US spot Bitcoin ETFs through Thai brokers?
No. Thai brokers may arrange foreign crypto ETF investments only for institutional and ultra-high-net-worth clients, and depositary receipts on foreign crypto ETFs are not permitted initially.
This article is for information only and is not financial advice. Crypto assets are volatile; do your own research. Read our disclaimer
More from Regulation
View all →Read next
Goldman, Wells Fargo, Morgan Stanley bet on tokenization
Q3 earnings calls showed how Goldman Sachs, Wells Fargo and Morgan Stanley each expect to profit from tokenization: more trading, faster payments, more advice.
Ether margin longs on Bitfinex climb as prices stall
Bitfinex traders hold about 367,500 ETH in margin longs against under 9,000 ETH in shorts, while bitcoin and ether trade flat into a quiet Saturday evening.
Fidelity's Solana health check: reliable, but too concentrated
Fidelity's FCAT says Solana has gone two years without a major outage, yet 18 validators, one host and two EU cities hold an outsized share of its stake.