Thailand Proposes Crypto ETF Framework Favoring Local Institutions

Thailand's Securities and Exchange Commission (SEC) has opened public comment on proposed rules for crypto exchange-traded funds (ETFs), allowing domestic fund managers, the Stock Exchange of Thailand, and locally regulated custodians to have a structural advantage in the market.

The proposed framework would initially allow passive, single-asset funds focused on Bitcoin or Ethereum. Each fund must maintain an average net exposure of at least 80% of its net asset value to its chosen asset over an accounting year.

This proposal aims to bring the crypto ETF model used in the United States to Thailand, where funds have attracted more than $60 billion in net inflows since launch. Bitcoin ETFs dominate with about $54 billion, followed by Ethereum products with roughly $12 billion.