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- Thailand finalized rules allowing locally established Bitcoin and Ether exchange-traded funds to list on the Stock Exchange of Thailand.
- The Securities and Exchange Commission issued 11 related notifications on Oct. 8, with the framework taking effect on Oct. 16.
- No Thai crypto ETF has yet been approved for launch, and issuers must still secure individual approvals before trading begins.
Thailand has finalized rules allowing locally established Bitcoin and Ether exchange-traded funds to list on the Stock Exchange of Thailand, creating a regulated route for retail and institutional investors to gain crypto exposure through the securities market.
The Securities and Exchange Commission issued 11 related notifications on Oct. 8. The framework takes effect on Oct. 16, although no Thai crypto ETF has yet been approved for launch.
Bitcoin and Ether are the Only Assets Eligible at Launch
The first phase limits crypto ETFs to Bitcoin and Ether. Funds must be passively managed, track a single cryptocurrency and maintain average net exposure of at least 80% of net asset value to that asset over each accounting year.
Future additions will depend on factors including liquidity, market acceptance, network security and investor protection. Asset managers must also demonstrate that they have the staff, operating systems and service-provider arrangements needed to manage the funds.
Crypto ETFs Must Maintain at Least 80% Exposure to One Asset
Digital assets backing the ETFs must be held by custodians regulated by Thailand’s SEC. Qualified digital asset companies will also be able to apply to act as mutual fund supervisors specifically for crypto ETFs.
Asset managers can outsource digital asset investment management only to licensed digital asset fund managers. The SEC may later allow qualifying foreign custodians if it determines that overseas custody is necessary.
Retail Investors Face Margin and Foreign ETF Restrictions
Crypto ETFs will trade exclusively on the Stock Exchange of Thailand. Brokers cannot provide margin loans for purchases, while investors must receive product information and confirm that they understand the risks before trading.
Thailand is also restricting competing routes during the initial rollout. Depositary receipts linked to overseas crypto ETFs will not be permitted, while brokers cannot facilitate foreign crypto ETF investments for ordinary retail clients.
Institutional and ultra-high-net-worth investors remain outside that restriction. Thai mutual funds and private funds will also be allowed to invest in domestically established crypto ETFs under existing investment limits.
The Oct. 16 effective date clears the regulatory path for fund managers to bring products to market. Issuers must still secure individual approvals before Thailand’s first locally listed Bitcoin or Ether ETF can begin trading.
