Thai SEC Unveils Draft Rules for Spot Bitcoin and Ether ETFs

Thailand's Securities and Exchange Commission (SEC) is making progress on draft regulations for spot Bitcoin and Ether exchange-traded funds (ETFs). The regulator has released two consultation papers, one outlining draft rules for Thai-listed spot crypto ETFs and the other setting out qualification principles for foreign digital-asset custodians used by mutual and private funds investing in digital assets.

The proposed regulations aim to create a framework for locally listed spot Bitcoin and Ether ETFs. Each Thai-domiciled ETF would track a single crypto asset, such as Bitcoin or Ether, with the initial phase limiting eligible underlying assets to these two cryptocurrencies only.

The draft rules specify that Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET). To ensure investor protection, the SEC has introduced an exposure requirement: minimum 80% average net exposure to the referenced asset over each accounting year. This signals that the regulator expects the funds to behave like straightforward spot trackers rather than multi-asset or structurally complex vehicles.

The consultation period runs until September 20, giving market participants and stakeholders an opportunity to provide feedback on the draft regulations. The SEC's revised custody approach keeps onshore custodians as the default in early stages, while allowing qualified foreign custodians only when necessary and appropriate.