Thailand Approves the First Spot Bitcoin ETF

Thailand has approved launching its first spot Bitcoin exchange-traded fund (ETF), joining a growing list of countries embracing regulated Bitcoin investment vehicles.

BREAKING: 🇹🇭 Thailand SEC approves the first spot #Bitcoin ETF. pic.twitter.com/ju1q83JvVP

— Bitcoin Magazine (@BitcoinMagazine) June 4, 2024

The Thai Securities and Exchange Commission (SEC) endorsed asset manager One Asset Management (ONEAM) to introduce a Bitcoin ETF, according to the Bangkok Post. The ONE Bitcoin ETF Fund is scheduled to be distributed between May 31 and June 6

Under the Thai SEC’s rules, the ETF will be limited to wealthy and institutional investors. This follows the regulator amending local guidelines in April to permit restricted Bitcoin ETFs targeting 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 like theft that come with direct ownership.

While ONEAM obtained approval, fellow Thai firm MFC Asset Management still awaits regulatory clearance for its own planned Bitcoin ETF product. Both will be private offerings for qualified investors only.

Thailand follows the trail blazed by the US SEC, which approved several Bitcoin ETFs this January, sparking surging interest. Other jurisdictions, such as Hong Kong, Australia, and the UK, have since followed suit in issuing spot Bitcoin ETFs or similar products.

The launches provide easy, regulated exposure to Bitcoin’s price movements without the need to handle Bitcoin directly. This better accommodates professional investors and institutions

By approving a Bitcoin ETF, Thailand’s regulators acknowledge the growing demand from local institutions to add Bitcoin allocations. The move could enable broader mainstream adoption once public offerings become available.