Thailand Advances Crypto ETF Rules, Opening Door for Institutional Investors

Thailand's Securities and Exchange Commission (SEC) has opened a consultation on draft rules for locally established spot Bitcoin and Ethereum exchange-traded funds (ETFs). The proposed framework would allow asset managers to offer passive ETFs tracking either Bitcoin or Ethereum, listed exclusively on the Stock Exchange of Thailand.

The SEC will assess eligible assets based on factors including liquidity, broad market acceptance, network security, and investor protection. Bitcoin and Ethereum have qualified for the initial phase, while fund managers must demonstrate suitable systems, staff, and access to relevant digital asset service providers.

Investors would face additional protection requirements, including education on crypto ETFs and a requirement to acknowledge their understanding of the associated risks before trading. The SEC also plans to allow mutual funds and private funds to invest in Thai-domiciled crypto ETFs, subject to existing investment limits.