The SEC of Thailand is considering approving Bitcoin exchange-traded funds (ETFs) for public trading. This aims to position the country as a leading digital asset hub in the Asia-Pacific region.
Thailand’s Crypto Landscape is Shifting
The Thai SEC is contemplating allowing individual and institutional investors to invest in local Bitcoin ETFs. This is a significant evolution from the country’s current offerings, which include a fund-of-funds launched by One Asset Management in June 2024.
SEC Secretary-General Pornanong Budsaratragoon emphasized the necessity of this move, stating, “Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”
The ETFs are part of a larger strategy to embrace digital assets. The government is exploring other innovative financial products like stablecoins, government-backed digital currencies, and integrating Bitcoin transactions in tourism-related services.
The journey towards Bitcoin ETF approval has been gradual. In June 2024, the Thai SEC approved ONE Bitcoin ETF Fund by One Asset Management (ONEAM), marking the country’s first Bitcoin ETF.
This fund invests in 11 top global funds based in Hong Kong and the US to enhance liquidity and safety.
The consideration comes amid intensifying competition to establish digital asset hubs in the Asia-Pacific region. Singapore and Hong Kong have already implemented supportive regulatory frameworks for cryptocurrencies.
Furthermore, global developments like the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs in January 2024 drive the move.
Implications for the Financial Sector in Thailand
The approval of Bitcoin ETFs provides a regulated and secure method for investors to gain exposure to Bitcoin without directly holding the cryptocurrency.
ETFs provide a familiar investment vehicle for institutional investors. This could attract more institutional investors who would bring significant capital into the Thai crypto market.
Additionally, this could increase market liquidity by boosting trading volumes and overall activity in Thailand’s cryptocurrency market.
Investors also enjoy diversification opportunities in a new asset class. This may enhance returns and help manage risk.
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