Thailand Opens Doors to Bitcoin ETFs for Institutional and Elite Investors

The Securities and Exchange Commission (SEC) of Thailand has recently approved a new policy, opening the doors for institutional and select high-net-worth investors to engage in cryptocurrency exchange-traded funds (ETFs). This is a slight deviation from earlier in the year when the SEC had refused applications to list bitcoin ETFs for trading.

Under this new directive, announced by Pornanong Budsaratragoon, the SEC’s Secretary-General, asset managers now have the green light to invest in bitcoin ETFs that are spot-priced and listed on American exchanges. The SEC has redefined spot bitcoin ETFs as securities within the framework of the SEC Act, thereby enabling Thai securities companies to participate in these investment ventures. Looking ahead, the SEC is considering opening up these investment options to retail investors as well.

Pornanong mentioned that there had been requests from asset management firms for the ability to invest in digital assets, specifically bitcoin and spot bitcoin ETFs:

“Asset management firms asked the SEC for them to have exposure in digital assets, especially bitcoin and spot bitcoin ETFs, but we need to consider carefully whether to allow asset management firms to invest in digital assets directly due to the high risk,” 

The SEC’s nod of approval coincides with Bitcoin reaching new record highs today, presenting an opportune moment for Thai investors to venture into investments. Despite recent dip in its value, Bitcoin‘s trading price stood at 72,094 at the time this was written.

Ms. Pornanong further mentioned that the SEC board has green-lighted initiatives to enhance the regulatory framework and introduce new listing regulations as suggested by the Stock Exchange of Thailand (SET). These steps are aimed at boosting investor trust in the Thai financial market and fostering the exchange’s long-term growth. Among the approved measures are the monitoring of short selling activities, naked shorts, program trading, high-frequency trading, and efforts to limit stock price volatility.

In an announcement in January 2024 by the Thai SEC, it said it was to maintain a conservative stance, disallowing asset management firms from introducing spot bitcoin ETFs. Until this recent policy change, the SEC insisted that individual investments in digital assets must be made exclusively through officially sanctioned local exchanges.