Thailand Finalizes Bitcoin and Ether ETF Rules for Stock Exchange Trading

Thailand has finalized a regulatory framework allowing locally established crypto exchange-traded funds to track Bitcoin and Ether and trade on the Stock Exchange of Thailand, opening a new regulated route into the two assets for retail and institutional investors.

The 11 new regulations issued by Thailand’s Securities and Exchange Commission on October 8 will take effect on October 16. They establish the requirements under which asset management companies can create crypto ETFs but do not themselves approve a specific Bitcoin or Ether fund for listing.

Bitcoin and Ethereum are the only crypto assets eligible during the initial phase. The SEC can expand that list later based on factors including liquidity, broad market acceptance, network security and investor protection.

The final framework follows consultations conducted between April and May and a second review of the draft regulations between August and September.

Crypto ETFs Must Maintain at Least 80% Exposure

Thai crypto ETFs must operate as passive investment vehicles designed to track the price of a single eligible cryptocurrency.

Each fund must maintain an average net exposure of at least 80% of its net asset value to its underlying crypto asset over the accounting year. Asset managers seeking to launch a fund must also demonstrate that they have sufficient personnel, operational systems and service-provider arrangements to manage digital assets securely.

Crypto held by the funds must be safeguarded by digital asset custodians regulated by the Thai SEC. A mutual fund supervisor can use a sub-custodian, but the entity actually holding the digital assets must still be a licensed crypto custodian.

The regulator left room to permit qualified foreign digital asset custodians in the future when circumstances justify their use.

Thailand has been building a broader supervised framework around crypto infrastructure this year. The SEC recently finalized a Travel Rule covering self-hosted wallets, requiring licensed operators to verify wallet ownership or control when assets move between regulated businesses and private addresses.

Trading Restricted to the Stock Exchange of Thailand

Domestic crypto ETFs will be listed and traded exclusively on the Stock Exchange of Thailand.

Brokerages cannot provide margin loans for purchases of the funds. Investors must also receive information explaining the products’ characteristics and risks and confirm that they understand those risks before trading.

Asset managers face additional disclosure requirements covering fund structure, investment mechanisms, service providers and risks specific to crypto assets.

Mutual funds and private funds will also be permitted to invest in Thai crypto ETFs under their existing investment limits. They were previously able to obtain comparable exposure through eligible foreign crypto ETFs.

During the initial rollout, Thailand will restrict alternative products tied to overseas crypto ETFs, including depositary receipts referencing foreign crypto funds and certain brokerage arrangements that give retail clients access to overseas products. Institutional and ultra-high-net-worth investors are treated separately under the framework.

The ETF rules arrive as Thai regulators simultaneously expand digital-asset oversight elsewhere. Authorities introduced closer scrutiny of high-volume USDT trading this year, while the Bank of Thailand is separately developing a baht-backed stablecoin framework.

The new ETF regulations become effective on October 16, after which qualifying asset managers can use the framework to pursue domestic Bitcoin and Ether ETF products.

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