Thailand's SEC Advances Spot Bitcoin and Ether ETF Framework with 80% Exposure Floor

Thailand's Securities and Exchange Commission (SEC) has advanced its planned spot Bitcoin and Ether exchange-traded fund (ETF) framework into draft regulation stage. The new rules require locally listed ETFs to maintain at least 80% exposure to their underlying crypto asset, with Bitcoin and Ether being the only eligible assets during the initial phase.

The proposed regulations also keep domestic digital asset custodians as the primary custody option, allowing asset management companies to establish passive ETFs tracking a single cryptocurrency. Each fund would have to demonstrate sufficient operational readiness, including qualified personnel, systems, and access to service providers capable of handling the products.

The SEC will accept comments on both consultation papers until September 20 before proceeding with the regulatory process. This development is part of Thailand's efforts to increase locally based custody capacity and reduce dependence on overseas service providers.