Thailand finalizes rules for Bitcoin, Ether ETFs on Stock Exchange

Attakrit Chimphlapibul, co-founder of Bitkub Group, noted that the launch of spot Bitcoin and Ether ETFs in the United States has already created new avenues for investors to easily access digital assets. The Thai SEC's move is expected to replicate this accessibility within the domestic market.

Under the amended rules, mutual funds and private funds in Thailand will be allowed to invest in locally established crypto ETFs, a change from the previous restriction that only permitted investment in foreign crypto ETFs. The regulations also stipulate that brokers cannot offer margin loans for the purchase of crypto ETFs, and all fund assets must be held by SEC-regulated digital asset custodians. Investors will be required to acknowledge and confirm their understanding of the risks associated with these products before trading.

Crypto ETFs will be managed as passive investment vehicles, designed to track the price of the underlying cryptocurrency. They must maintain an average net exposure of at least 80% to a single cryptocurrency over each accounting year. The SEC had consulted on the proposed principles in April and May, followed by draft regulations in August and September, with most respondents supporting the proposals.