Thailand Advances Spot Bitcoin and Ether ETF Rules with 80% Exposure Floor

Thailand has made significant progress in its plans to introduce spot Bitcoin and Ether exchange-traded funds (ETFs). The country's Securities and Exchange Commission (SEC) has moved forward with draft regulations that include an 80% minimum exposure requirement for locally listed ETFs. This means that each fund would need to maintain at least 80% of its net asset value in the underlying cryptocurrency over each accounting year.

The initial phase will focus on Bitcoin and Ether, which are considered sufficiently liquid and widely accepted for the product. The SEC has selected these two assets because they meet the regulator's criteria for high liquidity and broad market acceptance. Asset management companies would be allowed to establish passive ETFs tracking only one of these cryptocurrencies.

Domestic digital asset custodians will remain the primary custody option, but the SEC may permit the use of qualified foreign DA custodians when necessary and appropriate. The regulator has discretion to approve foreign custodians without removing the preference for domestic providers.