Thailand Proposes Rules to Bring Billions in Crypto ETF Wealth Under Local Control

Thailand is proposing rules to create a framework for localizing Bitcoin and Ethereum ETF markets. The Securities and Exchange Commission (SEC) has opened public comment on the proposal, which would initially allow passive, single-asset funds focused on Bitcoin or Ethereum.

The proposed products would need to maintain an average net exposure of at least 80% of net asset value to its chosen asset over an accounting year. This means that the funds would be required to hold a significant portion of their assets in either Bitcoin or Ethereum, and not spread them across other cryptocurrencies.

Thailand's proposal is modeled after the success of crypto ETFs in the United States, 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.