Thailand SEC Approves First Spot Bitcoin ETF

Thailand’s Securities and Exchange Commission (SEC) has approved the country’s first spot Bitcoin Exchange-Traded Fund (ETF).

According to a report from Bangkokpost, the Thai SEC gave the green light to One Asset Management (ONEAM) to launch a spot Bitcoin ETF. The investment product is named the “ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI).”

Despite the the approval, the report highlights that the ETF has been assigned a risk score of eight, categorizing it as high-risk due to the inherent volatility of cryptocurrency prices. To maintain the necessary liquidity and security for its investors, One Asset Management is required to invest in 11 global funds.

ONEAM chief executive Pote Harinasuta lauded the development, noting that the company saw “high growth potential for Bitcoin.” The executive also sought to reassure investors of the safety of gaining exposure to the crypto asset via a regulated ETF.

Thailand Joins US and Hong Kong

Aside from ONEAM, other firms in Thailand, including MFC Asset Management, are seeking to gain approval from the country’s securities regulator for similar products, which would cater to wealthy individuals and institutional investors.

The Thai SEC’s decision to approve a spot Bitcoin ETF comes months after the investment products were approved in the United States earlier this year. The report further revealed that Thailand considered the regulatory frameworks in the U.S. and Hong Kong in the development of the Thai spot Bitcoin ETF policy.

Recall that the United States Securities and Exchange Commission approved the first wave of spot Bitcoin ETFs in January, allowing asset management companies to offer investors indirect exposure to Bitcoin. 

Similarly, the Securities and Futures Commission (SFC) of Hong Kong officially approved multiple spot Bitcoin and Ethereum ETFs in the region.

Meanwhile, more countries are either joining or planning to join the spot Bitcoin ETF bandwagon. Earlier today, Australia launched a first-of-its-kind spot Bitcoin ETF that directly holds BTC.