Thailand SEC has approved the first spot Bitcoin ETF in the country, launched by One Asset Management (ONEAM).
Thailand SEC has given its approval to the first spot Bitcoin Exchange-Traded Fund (ETF) in the country, which is a significant step forward for the cryptocurrency sector.
This historic decision represents a huge step forward in Thailand’s mainstream use of digital assets. It provides investors with a regulated and accessible way to obtain exposure to Bitcoin, which helps buyers gain exposure to the cryptocurrency.
We anticipate that the establishment of this exchange-traded fund (ETF) will significantly impact both the domestic and international cryptocurrency markets.
ONEAM Leads the Charge with Bitcoin ETF
This approval will signal an increase in institutional confidence and regulatory backing for Bitcoin and other cryptocurrencies. Thailand SEC has approved One Asset Management (ONEAM) to be the first company to launch a spot Bitcoin exchange-traded fund (ETF) in Thailand.
Rich customers and institutional investors are the target audience for this ETF. Over the course of the period beginning on May 31 and ending on June 6, the ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) will be accessible to investors with an investment risk level of eight.
This fund, which adheres to international standards and undergoes evaluation by regulatory organizations in the United States and Hong Kong, invests in eleven leading worldwide funds to ensure both liquidity and safety.
MFC Asset Management is also attempting to get permission from the Thailand SEC for a Bitcoin exchange-traded fund (ETF) that is intended for investors that are similar to them.
“Digital assets are an alternative asset that has a low correlation with other financial assets,” said Pote Harinasuta, chief executive officer of ONEAM. “Digital assets are available to investors.”
They are suitable to assist investors in diversifying their investment risks. The United States Securities and Exchange Commission (SEC) and the Securities and Futures Commission of Hong Kong have recently made it possible for exchange-traded funds (ETFs) to invest in Bitcoin and Ethereum.
Thailand SEC Amendments and Investment Insights
This has led to the growing popularity of Bitcoin ETFs on a global scale. Following the United States Securities and Exchange Commission’s clearance of Bitcoin ETF trading on January 11, Thailand SEC had earlier proposed revisions that would allow asset management firms to start private funds investing in U.S.-spot Bitcoin ETFs.
This decision is in line with the worldwide trend of rising investor confidence in exchange-traded funds (ETFs) about Bitcoin. In spite of the increased demand from institutional investors, the Secretary-General of the Securities and Exchange Commission, Pornanong Budsaratragoon, stressed the high-risk nature of these investments.
Noting that Bitcoin has had an average yearly return of 124% over the past 11 years, Pote Harinasuta brought attention to the cryptocurrency’s potential for significant profits.
This is in contrast to the cryptocurrency’s high volatility, which is 83%. In order to achieve an annual return of 8.90%, he recommended that investors restrict their exposure to Bitcoin to a maximum of 5% of their portfolio.
He emphasized the safety of investing through exchange-traded funds (ETFs), which differ from direct investments on various platforms because custodians maintain the data and coins of unitholders offline. This provides protection against hazards such as data loss or theft, which have plagued direct investments.