Thailand Releases Draft Rules for Spot Bitcoin and Ether ETFs

Thailand's Securities and Exchange Commission (SEC) has made significant progress in allowing spot Bitcoin and Ether exchange-traded funds (ETFs). The regulator released two consultation papers for public feedback, outlining draft rules for Thai-listed spot crypto ETFs and qualification principles for foreign digital asset custodians used by mutual and private funds.

The proposed rules would permit passive ETFs tracking only Bitcoin or Ether on the Stock Exchange of Thailand (SET), with each ETF focused on a single cryptocurrency. The SEC aims to maintain an average net exposure of at least 80% of the net asset value to the tracked cryptocurrency over each accounting year.

In response to earlier feedback, the SEC revised its custody framework to prioritize onshore digital asset custodians for the initial phase. Foreign providers would need to meet regulatory and investor asset protection standards, with qualified foreign custodians allowed only when necessary.