Thailand is considering allowing Bitcoin exchange-traded funds (ETFs) to list on local exchanges for the first time, as the nation seeks to position itself as a leading digital asset hub in Asia.
The Securities and Exchange Commission (SEC) is evaluating whether individuals and institutions should be permitted to invest in domestically-listed Bitcoin ETFs. “Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” said Secretary-General Pornanong Budsaratragoon in an interview on Tuesday. “We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”
In June 2024, Thailand’s One Asset Management introduced a fund-of-funds offering exposure to overseas Bitcoin ETFs. However, the country has yet to authorize investment vehicles that directly hold Bitcoin, the world’s most prominent cryptocurrency.
Competing in Asia’s Digital Asset Race
Thailand’s consideration of Bitcoin ETFs comes as competition intensifies in the Asia-Pacific region to become a digital asset powerhouse. Singapore and Hong Kong have already implemented supportive regulatory frameworks, while further afield, U.S. President-elect Donald Trump has pledged to establish America as the global leader in cryptocurrency adoption.
Within Thailand, Binance Holdings Ltd. and other major digital asset firms have identified the country as a key growth market, bolstered by relaxed restrictions and the pro-crypto stance of the ruling Pheu Thai Party. The party’s de facto leader, Thaksin Shinawatra, has expressed strong support for digital innovation.
Thaksin recently proposed issuing stablecoins backed by government bonds to both retail and institutional investors. He also suggested creating a regulatory “sandbox” in Phuket to facilitate Bitcoin transactions in tourism-related services.
Expanding Access to Digital and Corporate Assets
The SEC is also exploring options to allow firms with robust credit ratings to issue stablecoins backed by corporate bonds. This initiative aims to improve access to corporate debt markets while reducing costs for investors, Pornanong explained.
Thailand’s move toward Bitcoin ETFs coincides with a broader cryptocurrency rally that saw Bitcoin reach an all-time high of $108,315 in December 2024. Despite this surge, digital trading activity in Thailand remains below its pandemic-era peak, impacted by a wave of crypto bankruptcies in 2022.
A Growing Crypto Market
The number of active cryptocurrency trading accounts in Thailand reached approximately 270,000 as of November 30, according to SEC data. This growing activity reflects the nation’s increasing engagement with digital assets, even as it works to recover from earlier market disruptions.
As Thailand mulls the introduction of Bitcoin ETFs and other digital currency initiatives, its efforts could significantly enhance the nation’s standing in the global crypto landscape, fostering innovation while providing investors with more opportunities in the fast-evolving digital economy.
