Thailand Advances Draft Regulations for Bitcoin and Ether ETFs

Thailand's Securities and Exchange Commission (SEC) has taken a significant step towards making it easier for investors to access Bitcoin and Ether exchange-traded funds (ETFs). The regulator released draft regulations for Thai crypto ETFs, which would allow asset managers to establish passive ETFs tracking BTC or ETH. These ETFs would trade exclusively on the Stock Exchange of Thailand (SET).

According to the proposed rules, each ETF would need to maintain an average net exposure of at least 80% of its net asset value to the corresponding crypto asset over each accounting year. This means that if an ETF tracks BTC, it must hold at least 80% of its assets in BTC.

The SEC is also revising its approach to foreign digital asset custodians. Under the revised proposal, onshore digital asset custodians would be the primary providers for crypto ETFs during the initial phase, but qualified foreign DA custodians may be permitted when necessary and appropriate.