Thailand’s Securities and Exchange Commission (SEC) is seeking public feedback on draft rules that could allow Bitcoin and Ether exchange-traded funds (ETFs) to be listed and traded in the country.
The regulator published an announcement on 24 August setting out two consultation exercises, including proposed regulations for digital-asset ETFs and amended eligibility requirements for foreign custodians.
Under the draft framework, cryptocurrency ETFs would have to be established and managed by a licensed asset management company. Thailand’s SEC said the products would be subject to existing ETF rules, similar to those already applied on the Stock Exchange of Thailand (SET), as well as requirements covering digital-asset investment by mutual funds and additional investor-protection measures.
“A crypto ETF must be established and managed by an asset management company (AMC) and comply with the regulatory framework generally applicable to ETFs, the requirements governing investment in digital assets by MFs, and additional investor protection measures,” Thailand’s SEC notice says.
Bitcoin (BTC) and Ethereum (ETH) funds would be the first digital-asset ETFs eligible under the proposed rules. If the framework progresses as planned, funds based on other cryptocurrencies could be considered at a later stage.
The initial proposal would also exclude wrapped-style funds. It covers both Thailand-focused crypto ETFs and foreign-listed products, including BlackRock’s IBIT, while requiring asset managers to demonstrate that they have suitable operational arrangements in place.
Custody is another central part of the consultation. Thailand’s SEC appears to favour domestic custody arrangements, although overseas providers could be accepted where they are considered “necessary and appropriate”. The regulator’s preference would allow it to maintain closer oversight of the assets and the entities responsible for holding them.
The SEC also stated that “crypto ETFs must be listed and traded exclusively on the Stock Exchange of Thailand (SET),” according to its announcement.
Earlier Bitcoin ETF approval
The announcement follows an earlier move by Thailand’s securities regulator into the digital-asset investment market. In June 2024, it approved the ONE Bitcoin ETF (ONE-BTCETFOF-UI).
That product was available only to wealthy and institutional investors. It was also structured as a wrapper and did not hold Bitcoin directly.
The latest proposal is focused on spot Bitcoin funds that would be traded on the SET and hold actual BTC under Thai financial regulations. If approved, the plan would create a route for Thai retail investors to gain exposure to spot cryptocurrency ETFs.
Interest in crypto ETFs has continued internationally. Bitcoin and Ether ETFs extended their runs of daily inflows to six sessions on Monday, attracting $337.56m and $115.57m respectively.
