Thailand SEC Sets Oct. 16 Start for Bitcoin and Ether ETF Rules

Thailand’s Securities and Exchange Commission will put its first cryptocurrency exchange-traded fund framework into force Oct. 16, opening a regulated route for funds tied to Bitcoin (BTC) and Ether (ETH).

The initial rules cover only those two assets. Eligible funds must track the price of a specific cryptocurrency and maintain average net exposure of at least 80% of net assets during each fiscal year.

Trading will be limited to the Stock Exchange of Thailand. The framework also requires funds to use licensed custodians to hold crypto assets and private keys, while outsourced management functions must go to licensed digital asset fund managers.

Investors must acknowledge risks including price volatility, technology risks and regulatory changes before trading. Securities firms will also be barred from providing margin loans for cryptocurrency ETF purchases, limiting investors to their own funds.

Thailand’s framework takes a narrower approach than the U.S. market by limiting eligible assets and trading venues while prohibiting margin financing. The rules take effect Oct. 16, after which fund managers can pursue launches under the new requirements.