Thailand SEC approves the country’s first spot Bitcoin ETF, boosting mainstream adoption and regulatory support for cryptocurrencies.
The approval of the inaugural spot Bitcoin Exchange-Traded Fund (ETF) in Thailand by the Securities and Exchange Commission (SEC) is a significant milestone in the cryptocurrency industry.
This momentous action signifies a substantial advancement in the widespread acceptance of digital assets in Thailand, offering investors a regulated and easily accessible avenue to familiarize themselves with Bitcoin.
The endorsement of this exchange-traded fund (ETF) is anticipated to yield significant consequences for the domestic and international cryptocurrency markets, serving as an indication of increasing regulatory backing and institutional confidence in Bitcoin and other cryptocurrencies.
Aiming to attract affluent and institutional investors, the Securities and Exchange Commission (SEC) has designated One Asset Management (ONEAM) as the pioneering firm in Thailand to introduce a spot Bitcoin ETF.
With an investment risk level of eight, the ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) will be accessible from May 31 to June 6.
To assure safety and liquidity, this fund is constructed to invest in eleven leading global funds, with coin storage that complies with international standards and is inspected by regulatory agencies in the United States and Hong Kong.
Additionally, MFC Asset Management is requesting SEC approval for a Bitcoin ETF that targets comparable investors. OnEAM’s chief executive officer, Pote Harinasuta, states, “Digital assets are an alternative asset with a low correlation to other financial assets.”
They are well-suited to assist investors in the process of risk diversification. Recent regulatory approvals by the US SEC and Hong Kong’s Securities and Futures Commission permit the formation of Bitcoin ETFs and Ethereum ETFs, respectively, which are acquiring international recognition.
In light of the U.S. SEC’s January 11 approval of Bitcoin ETF trading, the Thai SEC had previously declared amendments permitting asset management firms to establish private funds that invest in U.S. spot Bitcoin ETFs.
This decision reflects the worldwide pattern of heightened investor trust in Bitcoin exchange-traded funds (ETFs). Despite the increasing interest from institutional investors, SEC secretary-general Pornanong Budsaratragoon stresses the high-risk nature of these investments.
Bitcoin has the potential for high returns, according to Pote Harinasuta, who noted that its average annual return over the past eleven years has been 124%, in contrast to its high volatility of 83%. He recommended that investors restrict their exposure to Bitcoin to 5% of their portfolio with the expectation of achieving an annual return of 8.90%.
The individual emphasized the significance of security when investing via ETFs. Custodians store the data and coins of unitholders offsite, providing protection against risks such as theft and data loss that have been identified as issues with direct investments on other platforms.