Thailand Edges Closer to Allowing Bitcoin and Ether ETFs

Thailand's Securities and Exchange Commission (SEC) has taken another step towards making locally listed Bitcoin and Ether exchange-traded funds (ETFs) a reality. The regulator is now seeking feedback on two consultation papers, one containing draft regulations for Thai crypto ETFs and the other proposing principles governing the qualifications of foreign digital asset custodians.

The proposed rules would allow asset managers to establish passive ETFs tracking Bitcoin or Ether, with each ETF required to maintain an average net exposure of at least 80% of its net asset value to that asset over each accounting year. Initially, these ETFs would trade exclusively on the Stock Exchange of Thailand (SET).

The SEC's revised approach to crypto custody has also been updated, retaining onshore digital asset custodians as the primary providers for crypto ETFs during the initial phase.