Bitcoin and Ether ETF: Thailand opens its stock exchange to crypto

Bangkok is doing it. The Thai Securities and Exchange Commission finalized its rules on Bitcoin and Ether ETFs on Thursday, October 8. They come into force on October 16.

After Hong Kong and its first spot bitcoin and ethereum ETFs, Thailand is opening its national stock exchange to these funds. But the regulator does not cite any issuer at this stage.

Bitcoin ETF in Thailand: what the rules allow

First, the SEC only admits bitcoin and ether. Then, the Stock Exchange of Thailand retains exclusivity for the listing of these Bitcoin and Ether ETFs, specifies the press release from the Thai SEC.

The fund remains passive: it follows the price of the underlying cryptocurrency. Its net exposure to a single crypto also reaches at least 80% of its net asset value, on average over each financial year.

The assets remain with digital asset custodians that the SEC regulates. Brokers are also prohibited from providing margin loans to purchase these Bitcoin ETFs. Finally, investors should confirm that they understand the risks before subscribing.

Who will be able to buy: funds yes, foreign ETFs no

Mutual funds and private funds can now invest in crypto ETFs under Thai law. Until now, they could only buy foreign ETFs.

For individuals, however, the door to abroad remains closed to Thai brokers. They therefore cannot facilitate the purchase of foreign crypto ETFs. Only institutions and very wealthy individuals escape this rule. The SEC also currently excludes depositary receipts backed by these ETFs.

The regulator first consulted on the principles in April and May. He then submitted the draft regulations in August and September. Most respondents supported the proposals. Attakrit Chimphlapibul, co-founder of Bitkub, cites the American precedent with the Thai media Money and Banking. According to him, spot ETFs have opened new avenues for institutions and individuals.