Thailand Approves First Spot Bitcoin ETF, Joining Global Trend

Thailand has approved the country’s first spot Bitcoin exchange-traded fund (ETF). The Thai Securities and Exchange Commission (SEC) has given the green light to asset manager One Asset Management (ONEAM) to introduce the ONE Bitcoin ETF Fund. The ETF is set to be distributed between May 31 and June 6.

Key points:

• The ONE Bitcoin ETF Fund will be limited to wealthy and institutional investors under Thai SEC rules.
• ONEAM will allocate the money among eleven prominent worldwide Bitcoin funds.
• MFC Asset Management awaits regulatory clearance for its own planned Bitcoin ETF product.
• Thailand joins a growing list of countries, including the US, Hong Kong, Australia, and the UK, in issuing spot Bitcoin ETFs.

The approval of the Bitcoin ETF in Thailand follows the regulator’s amendment of local guidelines in April. The guidelines permitted restricted Bitcoin ETFs targeting professional investors. This move aligns with the growing trend of countries embracing regulated Bitcoin investment vehicles.

ONEAM CEO highlights potential Bitcoin benefits

ONEAM’s CEO, Pote Harinasuta, highlighted the potential benefits of investing in digital assets. He stated, “Digital assets are an alternative asset that has a low correlation with other financial assets. They are suitable to help investors diversify investment risks.”  

However, Harinasuta cautioned that while investing in Bitcoin can offer good returns, it also comes with high volatility. ONEAM recommends investors allocate only 5% of their portfolio to Bitcoin to strike a balance between risk and reward.  

While ONEAM’s Bitcoin ETF has received permission, MFC Asset Management is still awaiting regulatory certification for its own Bitcoin ETF product.