Thailand Regulator Facilitates Access for Eligible Investors to US-Listed Spot Bitcoin ETFs

Thailand’s Securities and Exchange Commission has modified its regulations to enable the launch of private funds investing in spot Bitcoin exchange-traded funds (ETFs) listed on United States exchanges.

According to a report from the Bangkok Post on March 12, only institutional investors and “ultra-high-net-worth individuals” will have the opportunity to invest in these private Bitcoin ETF funds.

Previously, the regulations governing asset management firms’ investments did not encompass digital asset ETFs. Under the SEC Act, asset managers were restricted to trading assets classified as securities.

However, following the approval of spot Bitcoin ETFs by the United States securities regulator in January, shares in these ETFs were redefined as securities rather than crypto assets under Thai regulations. SEC secretary-general Pornanong Budsaratragoon mentioned that only accredited investors will be allowed access to Bitcoin exchange-traded products (ETPs) due to their high-risk nature.

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“While asset management firms requested exposure to digital assets, particularly Bitcoin and spot Bitcoin ETFs, we need to carefully consider whether to permit asset management firms to invest directly in digital assets due to the associated high risk,” she stated.

In January, the Thailand SEC indicated that it would not permit asset management firms to launch their own versions of spot Bitcoin ETFs within the country.

Retail investors, however, are excluded from accessing spot Bitcoin ETFs under the new rules. Despite the popularity of retail crypto trading in Thailand, the government outlawed the use of digital assets for payments in March 2022. Additionally, the SEC prohibited the use of cryptocurrencies for lending and investment in July 2023. Nonetheless, restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects were lifted by the regulator in January.

Bitkub, the largest crypto exchange in the country, offers 107 pairs and boasts a daily volume of approximately $155 million, according to CoinGecko. Moreover, Binance entered the Thai market with a new exchange in January, but it is accessible only to Thai nationals.