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.