Thailand’s Securities and Exchange Commission (SEC) has issued rules allowing local asset managers to launch exchange-traded funds tracking Bitcoin and Ethereum, clearing the way for the country’s first domestically listed crypto ETFs. The regulator’s announcement says the notifications take effect October 16.
The funds must be passive vehicles that track a single cryptocurrency and hold at least 80% of their net asset value in that asset over each accounting year. Bitcoin and Ethereum are the only eligible assets in the initial phase, and the funds can trade only on the Stock Exchange of Thailand.
What the New Rules Require
Crypto ETF custodians must be digital asset custodians regulated by Thailand’s SEC. Asset managers seeking to launch a fund must show adequate organizational readiness, and they may outsource digital asset investment management only to licensed digital asset fund managers. Brokers cannot lend clients money to buy the funds, mirroring the existing ban on lending for direct crypto purchases.
Investors will have to acknowledge that they understand the product’s risks before trading, and securities firms must emphasize appropriate asset allocation. Digital asset custodians and other qualified operators can also register as mutual fund supervisors for crypto ETFs.
A New Route for Thai Investors
The change gives Thai investors a domestic option instead of relying on foreign products or direct exchange trading. Until now, Thailand permitted only institutional and wealthy investors to buy foreign crypto ETFs. The SEC also amended its rules so mutual funds and private funds can invest in Thai crypto ETFs, an option previously limited to foreign funds.
The move extends a broader digital-asset policy push in Thailand, which has one of the world’s highest rates of crypto ownership per capita.
What Comes Next
In the initial phase, the SEC will not allow depositary receipts referencing foreign crypto ETFs, or brokers to facilitate foreign-ETF purchases for non-institutional clients. The framework follows public hearings held between April and September, which the regulator said drew majority support.
The approval adds Thailand to a growing list of markets expanding crypto ETF offerings, though no fund has yet filed to launch and the first Thai Bitcoin or Ethereum ETF has no confirmed debut date.
