Thailand approves its first Bitcoin spot ETF

Thailand approved the launch of its first spot bitcoin exchange-traded fund (ETF), joining a growing list of countries adopting regulated bitcoin investment vehicles.

BREAKING: Thailand's SEC approves first place twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF. pic.twitter.com/ju1q83JvVP

– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1797926469509038476?ref_src=twsrc%5Etfw”>June 4, 2024

Thailand's Securities and Exchange Commission (SEC) backed asset manager One Asset Management (ONEAM) to introduce a bitcoin ETF, according to the bitcoin-fund”>bangkok diary

. The ONE bitcoin ETF fund is scheduled to be distributed between May 31 and June 6.

Under Thai SEC rules, the ETF will be limited to institutional and wealthy investors. This follows the regulator modifying local guidelines in April to allow restricted bitcoin ETFs aimed at professional investors.

ONEAM will invest the fund in 11 major global bitcoin funds to ensure adequate liquidity and security. The company said the ETF provides exposure to bitcoin in a regulated framework, addressing risks such as theft that come with direct ownership.

While ONEAM gained approval, Thai firm MFC Asset Management is still awaiting regulatory clearance for its own planned bitcoin ETF product. Both will be private offerings for qualified investors only.

Thailand is following the path set by the US SEC, which approved several bitcoin ETFs in January, sparking growing interest. Since then, other jurisdictions, such as Hong Kong, Australia, and the United Kingdom, have followed suit by issuing spot bitcoin ETFs or similar products.

Launches provide easy, regulated exposure to bitcoin price movements without the need to handle bitcoin directly. This is best suited for professional investors and institutions.

By approving a bitcoin ETF, Thai regulators recognize the growing demand from local institutions to add bitcoin allocations. The move could allow for broader mainstream adoption once public offerings become available.