Thailand SEC Drafts Rules for Spot Bitcoin and Ether ETFs with Stringent Requirements

Thailand's Securities and Exchange Commission (SEC) is moving closer to formalizing regulatory pathways for spot Bitcoin and Ether exchange-traded funds (ETFs). The agency has drafted rules that would allow Thai-listed ETFs to track a single crypto asset, initially limiting eligible underlying assets to Bitcoin and Ether only. This means a product tied to Bitcoin would be distinct from one tied to Ether.

The proposed structure is designed to keep the fund's exposure focused and easier to monitor against the relevant benchmark. The SEC's exposure requirement, a minimum of 80% average net exposure to the referenced asset over each accounting year, signals that the regulator expects funds to behave like straightforward spot trackers rather than multi-asset or complex vehicles.

The draft rules also specify that Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET). This concentrates secondary trading under a single venue, aligning with the established exchange infrastructure. Additionally, mutual and private funds can invest in Thai-domiciled crypto ETFs, but foreign-based products based on foreign crypto ETFs are not permitted at this stage.