Thailand Edges Closer to Spot Bitcoin and Ether ETF Listings

The Securities and Exchange Commission (SEC) in Thailand has released draft rules for spot Bitcoin and Ether exchange-traded funds (ETFs), a significant step towards allowing these products to be listed on the Stock Exchange of Thailand (SET).

According to the SEC, Thai-listed spot crypto ETFs would track only one asset each - either BTC or ETH - and trade exclusively on the SET. The draft rules also require ETFs to maintain an average net exposure of at least 80% of their net asset value to the tracked cryptocurrency over each accounting year.

The SEC is revising its custody framework after feedback from earlier consultations, with a focus on onshore digital asset custodians as the primary providers during the initial phase. Foreign custodians would only be permitted when necessary and appropriate, and must meet certain regulatory standards.

Mutual and private funds in Thailand would be able to invest in Thai-domiciled crypto ETFs and foreign crypto ETFs where already permitted, subject to existing investment limits. However, the regulator's initial rollout plan draws a line around certain indirect structures, with no alternative products tied to foreign crypto ETFs allowed at launch.

The draft regulations are open for public feedback until September 20, with the SEC seeking comments on both the spot crypto ETF rules and the custody framework.