Thailand’s regulatory authority has given the green light for the launch of its inaugural spot Bitcoin ETF, marking a significant step in the country’s embrace of regulated mainstream investment opportunities.
Thailand’s Regulatory Framework and Investment Strategy
As per Bangkok Post, the Thai Securities and Exchange Commission (SEC) granted approval to One Asset Management (ONEAM) to introduce the ONE Bitcoin ETF Fund.
Notably, based on the regulatory framework set by the Thai SEC, the spot Bitcoin ETF will cater exclusively to high-net-worth individuals and institutional investors. The Thai SEC had, in April, amended local guidelines. This paved the way for restricted Bitcoin ETFs targeting professional investors.
The funds from ONEAM will be allocated across 11 major global Bitcoin funds, as a way of ensuring robust liquidity and security measures. The ETF aims to provide regulated exposure to Bitcoin, mitigating risks associated with direct ownership such as theft.
Although ONEAM has received regulatory clearance, MFC Asset Management, another Thai firm, is still awaiting approval for its own spot Bitcoin ETF product. Both offerings per their designs comes as private placements accessible solely to experienced investors.
Thai Spot Bitcoin ETF: Global Context and Market Impact
The approval of spot Bitcoin ETF by Thailand’s SEC follows the footsteps of the US SEC which approved 11 spot Bitcoin in January of this year. Since that approval, investors have amassed 857,700 BTC worth a staggering $58.50 billion.
Other countries have likewise followed suit including Hong Kong, Australia, and the UK. The adoption by these countries signals the growing interest in spot Bitcoin ETFs or similar investment vehicles.
These ETF launches facilitate controlled exposure to Bitcoin’s price movements, serving as a convenient alternative for professional investors and institutions who prefer not to handle Bitcoin directly. The move by the Thai SEC opens the crypto market in the country for local traditional institutions to incorporate Bitcoin into their portfolios.
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