Thailand SEC Approves Local Bitcoin and Ethereum ETFs, Effective October 16

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.