Thailand Amends Crypto Rules: Opens Bitcoin ETFs for Institutional Investors

Tuesday, 12/03/2024 | 05:55 GMT by Arnab Shome

Thai securities companies can launch private funding to offer US-listed Bitcoin ETFs.

Retail investors are not allowed to invest in such funds.

Thailand’s Securities and Exchange Commission (SEC) is allowing asset management firms in the country to launch private funds to offer bitcoin exchange-traded funds (ETFs). However, the offerings must be limited to institutional investors and ultra-high-net-worth investors.

Bitcoin ETFs for Thai Investors

According to a Bangkok Post report today (Tuesday), the private funds managed by the local asset management firms can invest directly into US-listed Bitcoin ETFs. The decision to allow the restricted investment was taken by the board of the Thai regulator last week.

“Asset management firms asked the SEC for them to have exposure in digital assets, especially Bitcoin and spot Bitcoin ETFs, but we need to consider carefully whether to allow asset management firms to invest in digital assets directly due to the high risk,” said the Thai SEC’s Secretary General, Pornanong Budsaratragoon.

A Bullish Crypto Market

The decision to open the investment channel to Bitcoin ETFs came when the cryptocurrency market witnessed a bullish run. Bitcoin recently achieved a new all-time-high value beyond $71,000 and is now approaching $72,000.

In the US, 11 spot Bitcoin ETFs have been available to all investors, retail and institutional since the financial market regulator approved the instruments last month. Mainstream financial services giants like Blackrock and Fidelity are also offering Bitcoin ETFs.

Under the local Thai rules, securities companies in the country can offer trading with assets classified as securities. While approving the Bitcoin ETFs, the US regulator classified the instrument as securities rather than digital assets, opening them up for Thai securities firms.

However, the Thai regulator was initially skeptical of Bitcoin ETFs. Following the decision of the US regulator, the Thai regulator confirmed that it will not allow Bitcoin ETFs in the local market, citing that these products are still in very early stages, and such products may not be of direct economic value when it comes to the appropriateness of the Thai market.